Can owner redeem house if sold in a tax lien Sherriff Sale?

Question

A woman had her house up for sale. I looked into it. Found out it was heading for a Sherriff Sale. We agreed on a price. My cash funding could not come through so all could close until 1 day after the sale. Is there a 'time' for redemption that we have? One day after the sale, checks will be in Tax Deliquency office. They know that this sale is going through. What's your best guess. First they said NO problem they will just 'vacate the Sherriff Sale' but then a few days later they were acting as if it could be too late. Please let me know, what you know about Akron, Ohio (Summit County) laws on this matter. Thanks, Candy Edmonds

Candace Edmonds · Answer

Our transaction closed and my title company delivered checks to pay off all tax liens, via courier, two days after sale had taken place. They had been in contact with the tax deliquency dept. as was I, so they knew that they would be coming. Everything went well, they let her/us 'redeem' the house, and new titles were created and filed that day! Still and all, it was emotionally exhausting just 'not knowing' if we would get there in time! To Kieth: I've been told that many times companies will come in and 'buy up' a lot of the homes, most likely ONLY pay the tax liens off. If a private individual bids more than the tax liens needed to be paid off, the owner has to come in and fill out some form to get the overrage...many times they don't even know they can do this. I think the tax delinquency dept should notify them, but many times they don't. Money adds up, they earn interest on it maybe, that's why they don't tell people in all counties! Of course, we negotiated our deal directly with the seller, so she definitely got the difference. She was quite a wheeler dealer and ended up getting exactly what she wanted, and even refused to pay ANY closing costs! Thank God, we found a buyer after our first buyers backed out. We only cleared about 3K...not that much, but she made more and was able to pay off a water bill from the same house that was huge, get her own water and electric turned back on, and have a little cushion until she could land another job. My buyer, sold it two days later to someone who wants to live in it. They get to tell the buyer's contractor how they want it to be decorated/renovated, for the most part. A win-win all the way around. Thanks so much for all the replies and input!   - Candy E.

Benjamin Clark · Answer

This process is known as the "equitable right of redemption". The confirmation of sale if I'm not mistaken is dependent on the court schedule. I've personally seen it take about a month in my own county but again; I certainly advise you to consult with an experience Ohio license real estate attorney.

Keith Thompson · Answer

The only Sherriff's sales I have attended had an 10-day Upset Bid rule - 10 days allowed after a highest bid for another higher bid to be entered, thereby starting another 10-day upset period.  The sale is not final until there are no more upset bids are received, then it goes to a Judge to finalize.

If there's an upset period in Ohio, that might be your path to delay finalization while you figure out how to redeem, if that's even an option. You've got time and effort into the deal, so you're invested. An attorney will consult with you on this for a relatively small amount - I would contact one quickly.

Also - I believe that any overage generated from the Sherriff's sale is returned to the owner.  So, if the Ssale price is at or above the price you negotiated with the owner, they should receive the difference after liens are paid.

Candace Edmonds · Answer

If the sale wasn't 'confirmed with the court' in that same day, or by the afternoon of the next, (the day we'll be taking our checks in) then we should be okay I guess. Could they actually do it that fast? Don't believe I will be buying one that is heading for Sherriff sale again. Maybe one that has back taxes, but not try to 'beat the sale' again! The owner really wanted to sell. The proceeds will actually be helping her through a time of not being able to find work, and her own electric and water are heading for turn offs. Thank you SO MUCH! If you can think of anything else that I should be aware of, please let me know!

Benjamin Clark · Answer

Although I need to advise that you should speak with a licensed Ohio real estate attorney; a property owner can redeem a property sold at Sheriff sale after the sale but before the sale is confirmed with the court.

Jay Hinrichs · Answer

just depends on how nice the county is.... generally speaking though NO if there is not a statutory  redmeption period