Sheriff Sale at the County

9 Replies

Does anyone have experience at Buying properties at a Sheriff sale?  If so, if you win the auction with the highest bid, can you then pay the owner directly and have them redeem the property to you with a Quit Claim form?  

Here in Kenton County KY you have to pay the sheriff directly after the sale.

Thanks, here also in Minneapolis, but we still need to wait 6 months for the redemption period. 

Looks like you answered your own question.  After the sale is the redemption period and the owner typically has 6 more months living rent free and the ability to cause damage if they want.  The lender is typically the highest bidder anyhow, can't expect to get a substantial discount on the auction block.  Nobody can go inside so the banks normally claim their position, sometimes a 2nd mortgage will drop off.

@John Woodrich

My experience in getting sheriffs sale properties is different than you relate 

@Bruce Runn How have your experiences been different?  The redemption period and someone living in the properties are the reasons I haven't looked at these the last several years.  Everything I was following was purchased by the lender and hit the market 9-10 months after the sherrif's sale.

@John Woodrich

@Joseph Tramonte

I don't share how I buy/execute/analyze or when/how to buy them as that has taken time, experience, and $ paid to a lawyer who has guided/tutored me through the effective ways to get it done. 

But I will say I have bought properties with 6 month and 12 month redemptions.  It's all about how good of a deal it is so even with holding them, they can be killer deals.  I also buy pre foreclosure, at foreclosure, and post foreclosure so there are lots of options.  You can get them with 5 week redemptions in some cases as well.   I know of at least a dozen people who analyze every foreclosure coming on the market and have a friend that has bought up to 40 of them.  I've also gotten them for less than what was owed at the auction along with having a bank sell me their redemption which is quite a feat.

Originally posted by @Bruce Runn :

@John Woodrich

@Joseph Tramonte

I don't share how I buy/execute/analyze or when/how to buy them as that has taken time, experience, and $ paid to a lawyer who has guided/tutored me through the effective ways to get it done. 

But I will say I have bought properties with 6 month and 12 month redemptions.  It's all about how good of a deal it is so even with holding them, they can be killer deals.  I also buy pre foreclosure, at foreclosure, and post foreclosure so there are lots of options.  You can get them with 5 week redemptions in some cases as well.   I know of at least a dozen people who analyze every foreclosure coming on the market and have a friend that has bought up to 40 of them.  I've also gotten them for less than what was owed at the auction along with having a bank sell me their redemption which is quite a feat.

Wasn't asking for your trade secrets, you said your experience was different than mine so I was just curious how your experience has differed.  He specifically posted about a sheriff sale so a lot of what you said related to that transaction is the same as I have experienced.  I haven't seen many 12 month redemption periods, must have found a good deal in in that scenario!

There are many creative ways to acquire properties but in this case I imagine the property he is eyeing has the auction date set.  He could try to negotiate a purchase before the auction or try to delay it but if he buys it at the sheriff's sale the statutory redemption period will likely apply and he will have to wait.  I wasted a lot of time back in the day tracking them without great results, could have been the location though.  I was primarily investing in the west metro (Hopkins, Mtka, SLP, etc) at that time.  Same seems to be holding true for the properties in Chisago county that I have tracked.  Can see one looking out my door!  

Sounds like you have good strategies in place, unfortunately I don't have the time yet to fight hard for deals.  Hopefully sometime in the future.

@John Woodrich

Some of the differences were length of redemption (both 5 week and 1 year), that I got properties for less than what was owed at the auction as sometimes banks incentivize to get them off their books fast, and was able to buy inside the redemption period from the bank who foreclosed instead of having to wait until it to it back out after redemption.

Good points to note!  Typical redemption periods are 6 months but they can vary.  That is precisely the reason I said the redemption period is "typically" 6 months which I am sure you would agree with :)  There are always exceptions and people like you who put the time in have benefited from learning the rules.

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