Foreclosure Redemption Question
Does anyone have any experience with foreclosure redemption? I have an opportunity where a house went to foreclosure after the owner died and the children didn't do anything with the property. There was only $70K owed on the mortgage and an investor bought it at auction for $130k and did about $70k of work to it and is now selling the property for $330K. In my state judges will allow the investor to recover what they paid for the house and the repairs but won't allow the investor to make his $130k of profit. Also, judges won't allow for unnecessary things like landscaping, pools, hot tubs, etc.
The owners have been approached by other investors to buy their redemption rights for $20k. The guy who bought the property said that he doesn't believe that redemption rights can be sold to other investors and that the owners couldn't get a loan and is unwilling to give the previous owners anything.
If the owners can't assign their redemption rights I know I know that the owners can easily bring in a cash buyer that will be their financing partner, redeem the property for $200K and then sign over the property for $20K.