Bank Owned homes- Right of Redemption?

[cashflow]

We are researching the process of buying bank owned homes and have become aware that there is a legal clause that the bank has to give the foreclosee(person that lost the home), the right of redemption. What does this mean for a potential buyer? It is our understanding that if you purchase a foreclosed property and the previous owner is all of a sudden able to payup what they owe, then the bank has to give them back the property and even if it has been sold off, the previous owner has then the first right of ownership….therefore the bank would come to the new owner and say, ‘here’s your money back, get out!”

Anyone know anything further about these type of purchases?

[NotCranky]

Right of redemption pertains to judicial foreclosures. In CA most foreclosure are done via Trustee’s sales. We really are a not getting mortgages on our proeprties we are getting loans with a promissory note and giving bare legal title to a third party the “trustee” with the trust deed that gives them the authority to forecloses for the “beneficiary” who is the entity to which(whom?) the payment is promised.

Mortgage broker and mortgage, the way we use those terms are sort of misleading, because a mortgage is a legal instrument not a loan.

In other words, if you are buying in CA or other “trust deed” states there is less to worry about from the previous owner when you buy a foreclosure. If you are buying in other states you need to find out how things work there. There may be the occasional judicial foreclosure in California but I don’t recall when and why that might happen if it does.

[NotCranky]

Right of redemption pertains to judicial foreclosures. In CA most foreclosure are done via Trustee’s sales. We really are a not getting mortgages on our proeprties we are getting loans with a promissory note and giving bare legal title to a third party the “trustee” with the trust deed that gives them the authority to forecloses for the “beneficiary” who is the entity to which(whom?) the payment is promised.

Mortgage broker and mortgage, the way we use those terms are sort of misleading, because a mortgage is a legal instrument not a loan.

In other words, if you are buying in CA or other “trust deed” states there is less to worry about from the previous owner when you buy a foreclosure. If you are buying in other states you need to find out how things work there. There may be the occasional judicial foreclosure in California but I don’t recall when and why that might happen if it does.

[NotCranky]

Right of redemption pertains to judicial foreclosures. In CA most foreclosure are done via Trustee’s sales. We really are a not getting mortgages on our proeprties we are getting loans with a promissory note and giving bare legal title to a third party the “trustee” with the trust deed that gives them the authority to forecloses for the “beneficiary” who is the entity to which(whom?) the payment is promised.

Mortgage broker and mortgage, the way we use those terms are sort of misleading, because a mortgage is a legal instrument not a loan.

In other words, if you are buying in CA or other “trust deed” states there is less to worry about from the previous owner when you buy a foreclosure. If you are buying in other states you need to find out how things work there. There may be the occasional judicial foreclosure in California but I don’t recall when and why that might happen if it does.

[NotCranky]

Right of redemption pertains to judicial foreclosures. In CA most foreclosure are done via Trustee’s sales. We really are a not getting mortgages on our proeprties we are getting loans with a promissory note and giving bare legal title to a third party the “trustee” with the trust deed that gives them the authority to forecloses for the “beneficiary” who is the entity to which(whom?) the payment is promised.

Mortgage broker and mortgage, the way we use those terms are sort of misleading, because a mortgage is a legal instrument not a loan.

In other words, if you are buying in CA or other “trust deed” states there is less to worry about from the previous owner when you buy a foreclosure. If you are buying in other states you need to find out how things work there. There may be the occasional judicial foreclosure in California but I don’t recall when and why that might happen if it does.

[NotCranky]

Right of redemption pertains to judicial foreclosures. In CA most foreclosure are done via Trustee’s sales. We really are a not getting mortgages on our proeprties we are getting loans with a promissory note and giving bare legal title to a third party the “trustee” with the trust deed that gives them the authority to forecloses for the “beneficiary” who is the entity to which(whom?) the payment is promised.

Mortgage broker and mortgage, the way we use those terms are sort of misleading, because a mortgage is a legal instrument not a loan.

In other words, if you are buying in CA or other “trust deed” states there is less to worry about from the previous owner when you buy a foreclosure. If you are buying in other states you need to find out how things work there. There may be the occasional judicial foreclosure in California but I don’t recall when and why that might happen if it does.

[cashflow]

Thanks Rustico for the explanation!

[cashflow]

Thanks Rustico for the explanation!

[cashflow]

Thanks Rustico for the explanation!

[cashflow]

Thanks Rustico for the explanation!

[cashflow]

Thanks Rustico for the explanation!

[NotCranky]

Good luck . I hope you find some good deals.

[NotCranky]

Good luck . I hope you find some good deals.

[NotCranky]

Good luck . I hope you find some good deals.

[NotCranky]

Good luck . I hope you find some good deals.

[Author]

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