All Forum Posts by: Kalen Mills

@Greg H. I need to dig into the county records more because they told me Ovation purchased it at auction, but they are also the lender on a tax loan to the original homeowner. 

@Greg H. tax ale was in May of this year. 

@Greg H. title co has been working on it for weeks and didn’t even mention anything about redemption until this morning. But they haven’t responded yet. Do you have a link to any info pertaining to redemption being inapplicable to buyers in my situation? Google isn’t much help. 

@Wayne Brooks from what I can tell from county records it was purchased as a foreclosure by Ovation because borrower defaulted on a tax loan from Ovation. Ovation then transferred the deed without warranty to another company. I say REO because Ovation is a lender, and the seller is head of REO department. But since the contract says I'm responsible for all encumbrances I'm also referring to it as a foreclosure. If the seller paid most of the taxes, and I paid other county and federal taxes but there is still a right of redemption I am still at risk, right?

@Greg H. my title co. Said I could get title insurance 2 weeks ago. But didn’t bring up any redemption period issues until today (3days before closing). I assumed this was what a title company does. But either I was wrong or I need a more knowledgeable title co. Thanks for the reply!

Thanks @Alex Deacon. Yeah, from what I can tell Texas has a 2 year redemption period, except "borrower has no redemption period" according to a lawyer online. I've got an appointment with an attorney, but I have 3 days til the closing date and need answers fast. Title co. is dragging their feet and doesn't seem to have knowledge about the issue. I'm learning a lot on my first deal though!

I am under contract on a property that was a foreclosure. I'm trying to find a way to protect myself from the right of redemption being exercised, as well as be able to sell before the 2 yr right of redemption period is over. So many questions...

In the contract I am responsible for all encumbrances. Does this mean there's no way out of the contract now?

I have read that in Texas the "borrower" has no right of redemption. Does that mean that since it was an REO (Foreclosed due to defaulting on a tax loan) that there is no right of redemption?

I can buy the right of redemption and the right to contest sale. But how? And if they refuse, I just played my hand and can't rehab or rent property without significantly more risk.

If I go through with it how can I sell the property? Can I even rent without telling the renters that they may be evicted at any moment?

Does anyone have answers to any of these problems? This is my first deal and I can't lose everything first try.

@Stephaniepotter what kinds of institutions don’t require income etc? Credit unions and community banks?

Stephanie potter what kinds of institutions don’t require income etc? Credit unions and community banks?

I’m basing my decision on location. Will I get in trouble for not being in commercially zoned area? Is it in desirable location?