Home Buying in Minnesota>Question Details

Mike, Home Buyer in Minneapolis, MN

is there a redemption period in a short sale?

Asked by Mike, Minneapolis, MN Thu Mar 20, 2008

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Hi Mike.....

The redemption period is the time (5 weeks on a vacant property, 6 mo. on a inhabitited one) between the sheriff's sale and the date the property turns over to the winning bidder at the sheriff's sale. The winning bidder is usually, the bank or first mortgage holder. A property can, with some lenders, be sold short sale during the redemption period, if the mortgage holder ill allow it and work with the mortgagee.

I realize that's a tough answer to understand, but it's about as straight forward as I can make it. Short sale being the sale price of a property not being the full amount owed on the mortgage, and the mortgage holder or holders willing to accept less than owed and to forgive the balance of the debt.

In essence, there isn't a redemption period on a short sale.

I sure hope that helps.

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Thu Mar 20, 2008
Mike,
There is a six month redemption period after a sheriff's sale before the bank takes possession.
You can do a short sale anytime a bank will allow it. A short sale is when the bank takes less then they owe as a payoff off of the mortgage.
Does that answer your question?
Michael Doyle Realtor
0 votes Thank Flag Link Thu Mar 20, 2008
If the seller is in foreclosure and the house has gone through the Sheriff's Sale, then yes, a redemption can exist in a short sale. Many times the seller will still attempt to complete a short sale after the Sheriff's Sale.

Any closing in a situation like that has to complete prior to the end of the redemption period.
0 votes Thank Flag Link Thu Mar 20, 2008
Mike,

There is no redemption period in a short sale only in a foreclosure. If you would like to learn more about the short sale and foreclosure process click on my web reference below. Thanks,
0 votes Thank Flag Link Thu Mar 20, 2008
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