Foreclosure Title Redemption Period??????

Question

So I’m new to buying foreclosures. The particular foreclosure is for delinquent taxes from 2016. The auction is in 2 weeks so I’m doing my due Diligence with, I call the title company and ask for title reports to see if there are any mortgages/liens attached to the property. She calls back later and informs me there is a new law like a 20 year title redemption clause on tax foreclosures. She said they can’t take the property back but I also wouldn’t be able to sell it within 20 years unless I hire a lawyer and do something called a quiet title action.. has anyone else heard of this? Advice?? Thanks so much

Chris Anderson · Answer

@Sriv Nava thank you for this information I feel way more comfortable moving forward with the auction process now

Thomas Enright · Answer

Yeahhhh that definitely seems wonky. See if you can get in touch with someone doing the same thing in your market and bounce those statements off of him/her. I'm sure that title person just doesn't know the full picture.

Michael Porche · Answer

Yeah I would definitely talk to a few different title people. This way you can get more educated in the process and make new relationships. I just recently studied this law last month and I don't remember anything about a 20 year period. But I could be mistaken. I would bring that information to another title agency and see whats up.

Steve Morris · Answer

"She said they can't take the property back but I also wouldn't be able to sell it within 20 years unless I hire a lawyer and do something called a quiet title action."

Get a new title person, that 20 years sounds like BS.

In OR, we have guys that buy redemption rights before foreclosure.  You may want to look at an assignment.  Usually on foreclosures, they'll offer a few grand to the owner.  The owner is prob never going to redeem so it looks like found money.

Sriv Nava · Answer

http://rowleylegal.com/real-estate/tax-deed-sales-in-idaho/https://www.lawyers.com/legal-info/bankruptcy/foreclosures/idaho-foreclosure-process.html

"Redemption After the Foreclosure Sale

Some states allow the former homeowner to “redeem” the property after a foreclosure sale by reimbursing the new purchaser for the full price paid at the sale, plus fees and interest. In Idaho, the former owner cannot redeem the home after a nonjudicial foreclosure. (Idaho Code Ann. § 45-1508).

However, after a judicial foreclosure, the homeowner has six months to redeem a property that is 20 acres or fewer, and one year to redeem a property that is more than 20 acres"

Roger Priest · Answer

@Steve Morris Who buys the redemption rights? The bidder or a 3rd party?

Foreclosure Title Redemption Period??????

Most Popular Reply

"Redemption After the Foreclosure Sale