After the sheriff sale on my property in MN, am I able to still sell it to an Investor. Within the redemption, do i still have rights to the

Asked by Stcloud, Saint Cloud, MN Fri Jun 25, 2010

property?

My 1st and only mortgage was for $117,000, and the bank purchased it at the sheriff sale for $$83,700, and assigned it to another mortage company.

An investor is talking about maybe performing a loan modification, short sale, saving my credit, and getting me out of this mess.

I have been researching a lot online, and also reading about these service companies that come and change your locks after a sheriff sale, and do something like a foreclosure trash out? When does that happen?

I just want to know what are my rights, and options at this stage in the game: After the sherrif sale? I also have a friend who just had her house go into a foreclosure sheriff sale also, but she owes a lot more than the house is worth.

What are her options? Thanks

Any help will be greatly appreciated. Thanks

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9
Scott Hutchi…, Agent, Lakeville, MN
Sat Jun 26, 2010
To answer some of your other questions:


A foreclosure by action, a court proceeding, allows the lender to seek a deficiency judgment for any amount of the mortgage not covered in the sale.

A foreclosure by publication, which is more common, does not allow a mortgage company to seek a deficiency.

You will have the same rights to your house until the redemption date (if not acreage, it will be 6-months from the Sheriff sale). As long as the property is occupied, you “should” not have any issues with a “trash-out” or the locks being changed. There are times when the servicing company (the company performing the occupancy status/lock changes) changes locks on an occupied house. If this happens, call them immediately (they WILL post a contact number on your front door). This only happens when they feel that the house has been vacated….our general rule of thumb is if there is less than $300 worth of personal property, and if there are no signs of the house being occupied, we will deem the house vacant.


Scott Hutchinson
Edina Realty
scotthutchinson@edinarealty.com
http://www.scotthutchinson.edinarealty.com
C: 612 396-0692
0 votes
Scott Hutchi…, Agent, Lakeville, MN
Sat Jun 26, 2010
You have the right to redeem by paying the amount bided at the sheriff sale (so you can sell your house if you are in an equity position)……keep in mind though; you will have to pay any interest to the date you redeem. You will also have to pay any additional amounts the mortgage company incurs after the sale date; this will include: taxes, insurance, and other maintenance fees (lock-changes). If this was a foreclosure by advertisement, the mortgage company does not have a right to any deficiencies. If you have court judgments, a second mortgage, and/or tax liens, those do not go away. As always, if you have any legal questions, consult an attorney. If you have any market related questions, please feel free to call/email.

Scott Hutchinson
Edina Realty
scotthutchinson@edinarealty.com
http://www.scotthutchinson.edinarealty.com
C: 612 396-0692
0 votes
Bob Movin-On, , Hartford, CT
Fri Jun 25, 2010
OK first of all after a sheriff sale an investor can not perform a loan modification, short sale, or save your credit, but the investor can save your home if they are willing to pay everything that is due on the property for you, that's what the redemption period is a period for you to redeem the property. Be careful with all the discrepancies this investor is offering it might be a scam.
The rekey and/or trash out will happen if the home is vacant, if you still occupy the property they can do nothing, you still own the property until the title transfers after the redemption period.

Good Luck
Bob Patrick
buy a home after foreclosure expert
0 votes
Brad Anderson, Agent, Maple Grove, MN
Fri Jun 25, 2010
If you are still in your redemption period, you have ownership and most of the rights that go along with that.
0 votes
Steele V. Pr…, , Minneapolis, MN
Fri Jun 25, 2010
If the bank has reason to think the property has been abandoned they are allowed to protect their asset. So a rekey could be done in this case. As far as the trashout, that usually doesn't occur until the property is fully foreclosed upon (redemption over). Even then they will usually do what is called a personal property eviction. As this takes some 30-60 days personal items will usually just stay in the property until this is complete. Then they are allowed to get rid of anything that was not reclaimed by the original owner.

If you list and sell the property you will need to get a payoff figure from the lender but that will be based on the $83,700 figure plus interest and any other costs that have accumulated since the sheriff sale. If listed you would also have to pay the commissions. The bank usually only pays commissions if it is a short sale and the proceeds are not enough for you to pay. Depending on the market and price you get, you might be able to do one. But the lender must agree.

Right now you are in pretty good shape. By making the bid lower at the sheriff sale it is as if the bank has already forgiven a fair amount of your loan. Now it largely depends on what your property is worth in the open market to see your options should you decide to sell it. Just so you know an investor is usually not what the lender wants to see as they tend to want to buy a property at wholesale. The lender will want you to try and market it to regular buyers as well. Particularily if they end up doing a short sale.

Your friend would be in a similar circumstance but it sounds like a short sale would be most likely.

Of course this is an educated guess without knowing all the facts.

Good luck.

Steele V. Propp
steelep@aol.com
0 votes
Stcloud, , Saint Cloud, MN
Fri Jun 25, 2010
Thanks so much for the quick responses. Very impressive.

Thats great, So if I sell it to an investor, or list it with a realtor for $83,700, does that mean i am free and clear? and that pays off the mortgage, back payments, penalties, fees, interest, everything? So basically no surprises of the lender coming back to haunt me? Just want to make sure.

From my research online I read after sheriff sales of homes getting re - keyed. What triggers this?

And what triggers a foreclosure trash out? I read about this also.

What about my friend, who is going thru the same situation, except for she owes more than the house is worth?

Thanks again, I really appreciate the assistance.
0 votes
Steele V. Pr…, , Minneapolis, MN
Fri Jun 25, 2010
A oersonal residence typically has a six month redemption period during which you have full ownership rights as long as the propety is not vacated and abandoned. And as mentioned you have every right to sell the property as long as you can give the new buyer clear title.

Feel free to visit my website to see all the options available to you:

http://www.MinnesotaForeclosureNetwork.com

i would be happy to give both you and your friend a free no obligation consultation and explain all your alternatives.

Best wisheds,

Steele V. Propp, CDPE
0 votes
Rachel Luckow, Agent, Savage, MN
Fri Jun 25, 2010
You do have the right to sell your house during the redemption, but I would be very cautious in some kind of deal like this. I urge you to not pay anyone except an attorney for advice, and PLEASE do not sign your property over to a stranger! There is free help out there, so please proceed carefully, if at all!
Web Reference:  http://www.RachelLuckow.com
0 votes
Mark Hronski, Agent, Little Canada, MN
Fri Jun 25, 2010
You do have the right to sell it, the new amount owed is $83,700. You might want to consider getting a market value and listing it. Please let me know if I can help you out in anyway.
0 votes
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