I'd really like to know why someone gave Karin a thumbs down? The auction and redemption period may show up the same or different than a completed foreclosure on a person's credit report. The goal would be to make it advantageous for the seller such as a little cash in their pocket or less damage to their credit. As suggested, get an attorney and your original Realtor an hit it from all angles, sellers, bank, now & later.
Good luck, Ruth

I agree that it sounds like the home is under the old foreclosure law. Under that law in Colorado the seller then has 75 days to come up with all the money or it goes back to the bank. I recently helped a seller in this situation and we avoided the foreclosure sale and the buyer got a good deal. I would contact the listing agent when you first placed the offer. The seller can file an intent to redeem with the public trustee. Even if the seller can not redeem it is ok to file the notice because this is the only way the seller will know what all the fees are. It takes about 7-10 days to get the amount. Then they can decide if what you are willing to pay will cover all the necessary fees. If it is then you have the closing obviously before the sale date and it really is just like any other closing. The title company takes the money to the trustee and the deal is done. If the amount you are willing to pay is not enough then your next course of action is to wait until the home is out of redemption and work with the bank or their new listing agent. The bank will not usually do a "short sale" while it is in redemption because of title issues, so they need to be made whole. This all depends on how much they paid at the sale which is public record but does not include all the other fees from attorneys, etc. The deal I did worked well because the bank paid less than what was actually owed for the property so if they did end up owning it they would be able to sell it later at a market price. Please contact me if you need more information.

Redemption rights may vary from state to state, but why would you want to purchase a home only to find out later that it no longer yours. Redemption means that the original owner has some period of time to redem (satisfy the creditors) and get their home back. I think the bank is doing you a favor by not letting you do anything until the redemption period is up. Still don't want to wait hire an attorney with experience with foreclosure transactions in your state.

As a former banker who had to deal with this issue, I suggest that you make it known to the person at the bank charged with the responsibility of liquidating the property after the redemption period expires, that you have this level of interest. The longer the bank owns the property the more expenses they incur in the form opf taxes, maintenace, etc.not to mention having a non earning asset on their books. Sorry, that I am located in Florida, otherwise I could help you with the transaction.

The laws for foreclosure in Colorado changed in January of this year. Sounds like this home, however, is still under the old law since you mentioned a "Redemption Period". In other words, the lender, although it won at auction, has to now wait to see if the owner can come up with all the money plus all the fees and penalties. So, really, the only way you can get the home at this point would be to find out what that bottom line figure is (balance of loan, fees, penalties, lawyer costs , commissions,etc) and offer it to the Seller. The Seller can then fulfill his/her redemption obligations and the house becomes yours. Otherwise, keep a close eye on it and wait until the lender owns it outright. Now, you can deal directly with them or their rep and maybe get it at a lower cost. Hope this helps.

Call up the REALTOR you used to put an offer on the property, there is a lot of work involved in creating a successful transaction all parties are happy with.