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Stcloud, Other/Just Looking in Saint Cloud, MN

Am I able to purchase directly from a homeowner after a sheriff sale?

Asked by Stcloud, Saint Cloud, MN Sun Feb 10, 2013


I just talked to a motivated seller that had their property sold at the sheriff sale. The redemption period in MN is 6 months (occupied property) after the sheriff sale. They are very interested in selling.

Their Bank is the one that purchased the Sheriff sale certificate on the property at the sale. They purchased it for only $66,000, and the ARV is atleast $170,000, so obviously their is a lot of equity. Then I would rehab / Update, and sell retail.

I was thinking of purchasing this property directly from the homeowner with a Quit Claim Deed, Then paying off the county with the $66,000 certificate along with all accrued interest, penalties, fees any judgements, liens, back taxes, other mortgages.

Any and all advise is GREATLY APPRECIATED !

Please advise if my thinking is correct on my ideas above, and please let me know what I am missing, or anything from your experience investing into these type of Post - Sheriff sales transactions.

Help the community by answering this question:


Could be a deal, probably is a mess. The bank purchased the property at the Sheriff's sale for the amount of one lien (mortgage) against the property. Are there more liens against the property? During the redemption period you may also be in short sale territory where the seller has to agree to the price as well as any lien holders and mortgage insurers. Make sure you have a Realtor and title company experienced in deals like this on your side.
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1 vote Thank Flag Link Tue Feb 12, 2013
That sounds like a swell idea. Just try to make a win-win situation and not get greedy and you will have a great deal.
1 vote Thank Flag Link Mon Feb 11, 2013
After the Sheriff sale the Sheriff handles the transaction, and the homeowner deals with the sheriff. If he/she comes up with the sale amount before the period of equitable redemption they can purchase it back, and perhaps sell--though there would be tax or legal consequences that may mess the whole thing up.

Why not buy a house that's already gone through everything and avoid the hassle? It's not like there isn't any inventory out there. Plenty of rehabs available for dirt cheap.

That, or be at the sheriff's sale next time you want to buy.
1 vote Thank Flag Link Mon Feb 11, 2013
I think you would be better off to do it with a regular purchase agreement between you and the homeowner and have a title company close the property. You will get a warranty deed and the rights to the property. There is quite a bit involved in a redemption in terms of obtaining the sheriff's certificate, making sure the propoerty is recorded properly at closing, etc. One other thing to bear in mind is to make sure you do NOT let the homeowner stay in the property after you have purchase. Look up the 325N laws in MN. You can get yourself in some deep water. I have done a mulltitude of these types of sales.

Vicki Schwartz
MN Real Estate Options
Broker/Owner/Short Sale Professional
Accredited Platinum Real Estate Professional
Phone: (952) 443-2056
Fax: (952) 236-6429
Cell: (612) 801-2355
Check out our website at for great information on all aspects of real estate, for Buyers, Sellers and Investors
1 vote Thank Flag Link Mon Feb 11, 2013
Yes you are correct provided you can pay off all interest, attorney fees, auction price....etc and the home is still worth more than that you should be able to do so (unless paying cash then you don't need to worry about appraisal issues). I've done these before. Of course once the seller realizes how much equity might be there they might want to look else where for a buyer. Make sure it is a win-win for both parties. Good luck!
1 vote Thank Flag Link Sun Feb 10, 2013
There are several things that would come into play here. I specialize in these types of transactions. Give me a call call to discuss. 763-447-3925
0 votes Thank Flag Link Sun Feb 10, 2013
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