Foreclosure in Burnsville>Question Details

Donna Foss, Home Buyer in Waconia, MN

How long after a sheriff's sale does it take for a property to be bank owned or REO instead of a SSale in MN?

Asked by Donna Foss, Waconia, MN Fri Jun 26, 2009

Also, what is the process for trying to purchase a foreclosure property when the bank does not have the property officially listed for sale yet?

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3
Don Edam & John Cameron’s answer
One other quick thing. Depending on the bank, some will allow what is called a Short Redemption to take place. Its basically the same thing as a short sale, but during the redemption period.

Technically the owner of the home has the redemption period to attempt to 'redeem' the property by paying off the balance in full + legal/admin fees the bank has accumulated as a result of the foreclosure process. If you know who the owner of the home is and it is still in the redemption period, you can make an offer to the owner who would then turn that offer over to the bank for approval.

Let us know if you need any more info...Good Luck!
Web Reference: http://DonEdam.com
0 votes Thank Flag Link Sat Jun 27, 2009
Hi Donna,

It looks like you have an eye on a house that's currently in the foreclosure process. Typically there is a six month redemption period after the sheriff’s sale. After that, it will most likely take 2-3 mos after the redemption deadline for the bank to put it on the market. Regarding your second question, I'm not aware of any way to purchase the house from the bank before it's been listed for sale. To my knowledge, banks don't sell homes directly to the public. First of all they don't know what the market value is until they receive a BPO (Broker's Price Opinion) and also each state has different laws and requirements to sell a house. Therefore, they will sell it through a real estate broker and possibly work through a third party that handles these types of homes as well. Unfortunately, if you aren't able to buy the home before the sheriff’s sale, I don't see that you'll have a chance until it comes back on the market again.

If you're really interested in one particular house, I would absolutely make sure that you've spoken to a lender and done all the necessary pre-approvals. I would also have a Realtor with experience in bank mediated transactions ready to go so you can be the first one to make an offer. I'm seeing the trend lately that banks will deeply discount the homes so as to draw a lot of interest. This often results in multiple offers that drive the price up over the listing price and will sell very quickly. If you're truly serious about buying that particular house, it's not the time to play any games or put in a low bid.

I hope this helps. Good luck!

Patrick
1 vote Thank Flag Link Fri Jun 26, 2009
One trick I use is I set up an auto search on the local MLS system (assuming the property has been previously listed). Any changes in the property status (coming on the market) will trigger an email either to the agent or you. This is how I track various foreclosed properties in Minneapolis. Any Realtor with access to MLS can do this service for you. While it doesn't guarantee total success, it gives a good heads up if the home is listed on MLS.

Otherwise all of Patrick's information is spot on accurate. There are some exceptions to the six month redemption period but they are rarely invoked by lenders excepting in the most dire situations. A home in Burnsville most likely would not qualify under the emergency redemption portion of state statute.
0 votes Thank Flag Link Fri Jun 26, 2009
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