Читать книгу Foreclosure Investing For Dummies - Ralph R. Roberts - Страница 74

Many areas of the country give foreclosed-upon homeowners one last chance to get their homes back — through redemption. If the homeowners can come up with enough money to pay off the balance of their loans and all penalties and back taxes, they get to keep the property. In some cases, homeowners have up to a year to redeem their property before the high bidder at the auction takes possession.

The redemption period can affect you in any of several ways:

 If you purchased the property at auction, you must wait to do anything to the property until the redemption period expires. Otherwise, you may invest heavily in renovations only to see the homeowners or another investor redeem the mortgage that you bought and cut you out of the deal. You may need to secure the home (particularly if it’s vacant) and perform repairs to make the property safe and prevent deterioration, such as from a leaky roof, but invest as little as possible during this period.

 The homeowners may still be able to file for bankruptcy during the redemption period to buy themselves some additional time, which can throw your plans for renovating and selling the property for a loop.

 If another investor purchased a property and is waiting for the redemption period to expire, you still have an opportunity to purchase the property. You can work with the homeowners to bump the other investor out of the deal, redeem the property, and buy it directly from the homeowners.

Surviving the redemption period can be tricky, especially if other investors take interest in the property. Chapter 16 shows you what you should be doing during this time to protect your interest. Flip to the appendix at the back of this book to find out whether your state has a redemption period and, if it does, how long the redemption period is.