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Hanna Brown
  • Corvallis, OR
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Right of Redemption: multiple judgment debtors

Hanna Brown
  • Corvallis, OR
Posted Nov 18 2015, 22:26

I recently bought a judicial foreclosure at auction in Oregon. A couple were the defendants in the foreclosure, and they have since divorced. The property was a good price and in good condition, so I want to avoid redemption in order to keep the property. I was later confronted at the property by an investor who seemed interested in redeeming it, and asked me point-blank if I had the rights. (I did not at the time, and admitted so.)

After this, I immediately contacted one of the two previous co-owners, and obtained his right of redemption, in writing. Specifically, he signed a document stating that he was giving his right of redemption to myself and my spouse. He stated that he had not been approached by anyone else on this matter.

Question 1: does this document prevent the other, second judgment debtor, from selling their rights of redemption to this third party, who could exercise this against me to claim the property? Does it provide any recourse in this scenario?

Question 2: is there any risk that the lender would sell their 60-day redemption rights to this third party, who could exercise them against me to claim the property?

Question 3: would it be a good idea to have my spouse exercise the obtained document to redeem the property from me? Would this protect against redemption? The property is currently only in my name. A title search turned up only one $700 secondary lien from a utility bill, which is negligible compared to the value of the property.

Thank you for your advice.