I am currently negotiating a deal with a seller who has recently purchased a property via foreclosure auction and was wondering if you all might be able to help me unpack the risks associated with purchasing a property within the redemption period. I ask because the current owner is rehabbing the property and I am considering purchasing the property from him after the rehab is complete. My questions are, how difficult is it to argue that the upgrades made were “necessary” if they were to exercise their redemption right? How common/uncommon is this? Is it common practice to attempt to purchase the redemption rights from the owners who were foreclosed on? If the lien holder is deceased, do the redemption rights pass in to their widow or heirs? Thanks in advance for any insight.

It’s difficult to argue “substantial improvement” if they are deemed unnecessary by your county. For example a leaking roof repair may be necessary for health & safety, however upgrading to granite counters may not be.
If the estate passes on to heir, they may “own” the property & may have the right to redeem if it still within redemption period.