Foreclosure in 91204>Question Details

R. Sam, Real Estate Pro in Glendale, CA

Foreclosure / Short Sale / REO - Redemption Period in California

Asked by R. Sam, Glendale, CA Wed Apr 20, 2011

I see many Foreclosure listings in my zip code. I am confused about the Redemption periods in California.
For the bank owned or other foreclosed properties, if a new owner buys the property and lives in the property can the previous owner redeem the property within an year ?
The Redemption period starts after the bank take over the property or after a new owner buys the property in foreclosure?
The foreclosure experts in the site kindly advice...

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Answers

2
Keith Sorem’s answer
R.
I am including a link below that may be helpful for you. The practical story is that most homes that are foreclosed have a market value of less than the amount owed. This means that if I owned a home with a $700,000 mortgage, and it was worth $550K, and it was foreclosed, why would I redeem the property by paying more than it's worth, plus the late fees, penalties, and i interest?

Market values are driven by economic forces. Given the downward trend in values, the only time I can see this happening is if the property is worth more than the outstanding mortgage balance, plus penalties.
0 votes Thank Flag Link Wed Apr 20, 2011
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Well yes they can. But id someone else owns it has to go to court. Most people won't redeem because they have to pay what was owed plus costs. With most homes lost they are upside down. Not likely to happen.
0 votes Thank Flag Link Wed Apr 20, 2011
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