search foreclosure information

New to Avoid-Foreclosure-Services? Here you'll find a free answers to foreclosure questions and how to stop foreclosure!

help prevent foreclosure Simply quote your foreclosure refinance and receive a free advice from foreclosure specialists. You have nothing to loose. Compare ways to stop foreclosure safely and securely.

Relevant searches
What other people who read this article are searching for:


  • Foreclosure Property
  • Foreclosure
  • After Foreclosure
  • Buy Foreclosure
  • Foreclosure Sale
  • Foreclosure Property Sale
  •  

    Foreclosure Investing - Understand the Right of Redemption
    by Jacquelyn Lynn


    The rate of foreclosures and the potential profits they offer to investors mean that they are likely to remain a popular real estate strategy for the foreseeable future. But there's an old saying, 'the devil is in the details??meaning that even the largest project depends on the success of its smallest components, a fact that is certainly true when it comes to foreclosure investing. One of those details you need to understand and keep in mind is the right of redemption.

    The right of redemption is the right of a property owner to redeem his or her real estate from foreclosure by paying the lender the outstanding principal and interest due, plus the lender's costs in foreclosure, or to redeem foreclosed real property from whoever purchased it at the foreclosure sale. The specifics, such as how long the owner has after the property goes to auction, exactly what has to be paid, and even what the process is called, will vary by state.

    There are two key reasons why a foreclosure investor needs to be familiar with the right of redemption. One is that you need to know when you buy a property at auction whether or not the owner can get the property back if he somehow comes up with sufficient funds (typically the outstanding balance, accrued interest, late fees and costs). The second is that you may be able to buy the redemption rights whether or not you actually buy the property.

    Protecting your investment

    In states that provide the right of redemption after the foreclosure auction, you want to be sure you're not going to be faced with a situation where you buy the property, spend time and money fixing it up and putting it on the market, then have the owner (or another investor who has purchased the redemption rights) take the property and your potential profits away from you.

    The redemption period is set by state law and typically ends at some point before the sale or up to a year after the sale. If the redemption period in your state ends before or at the sale and you buy the property at auction, this shouldn't be an issue. But if the owner has weeks, months, or even up to a year or more after the auction to redeem the property, you have a level of uncertainty that most investors would find unacceptable. Most people who lose a house in foreclosure aren't likely to have the means to redeem it later, but circumstances can change and financial windfalls do happen. Also, because most of the secondary liens are wiped out with the foreclosure, it's possible that the owner could put himself in a better financial position by waiting until after the foreclosure to redeem the property rather than trying to pay those debts and stop the foreclosure.

    The solution is, when possible, to buy the redemption rights from the owner, either shortly before or shortly after you purchase the property at auction, at a price you are free to negotiate. Typically redemption rights are sold for amounts ranging from a few hundred to a few thousand dollars. In most cases, an owner facing foreclosure who sees no realistic way to either avoid the foreclosure or recover the property afterward will be happy to sell rights he never expects to use.

    Acquire property through redemption rights

    Another strategy to consider is to use redemption rights as a way to purchase property after foreclosure. The potential effectiveness of this technique will depend on state law'the redemption period needs to extend beyond the foreclosure sale'but this is how it might work: The redemption price is determined by a statutory formula and may be less than the property's fair market value or the total preforeclosure debt on the property. Let's say the fair market value of the property is $300,000. The property has a first mortgage of $200,000, a second mortgage of $90,000, and a mechanic's lien for $25,000. The lender in the first mortgage position is foreclosing. At foreclosure, the second mortgage and mechanic's lien may be wiped out. The person holding the right of redemption could exercise that right after the foreclosure sale and pay the redemption price, which would likely be $200,000 plus interest, late fees, and costs. Even if the interest, fees, and costs totaled $25,000 to $30,000, the purchaser is getting the property for far less than fair market value.

    If you're going to use this strategy, it's a good idea to have your financing in place and have any title issues resolved before exercising the redemption right.

    To get more information on the laws regarding the right of redemption in your state, start by calling your county courthouse and talking to someone who handles foreclosures.

    Jacquelyn Lynn ( http://www.jacquelynlynn.com ) is a business writer based in Orlando, Florida, and the author of Entrepreneur's Almanac, Make Big Profits on eBay (with Charlene Davis) and Online Shopper's Survival Guide. For more information about foreclosure investing, visit http://teachmeforeclosure.com

    More info on your stop foreclosure information search:

    Get Free Foreclosure Advice and Free Refinance Quotes
    Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...


    Foreclosure Problems? Get Help
    When a person becomes late on their monthly house payment, eventually the lender will begin foreclosure proceedings which in most cases will start with a notice of default or a lis pendens recorded with the county where the property is located. There are data companies that collect this information ... more...

    Stop Foreclosure
    The term foreclosure refers to the circumstances, which arise due to the nonpayment of loan to the lender. When the borrower failed to pay back the money borrowed to the lender, then the lender will transfer the ownership of house property to him. The foreclosure arises when the owner of the ... more...

    What You Should Know About Foreclosure Property Auctions
    Are you looking to invest in real estate? If you are, there is a good chance that your prime targets would be those that are considered foreclosure properties. A property goes into foreclosure when the owner is unable to make their mortgage payments. The mortgage then reverts back to the lender and ... more...

    Master The Mechanics Of Foreclosure - The Key To Being Effective In Pre-Foreclosure Investing
    To confidently compete in the pre-foreclosure arena, every investor must master the mechanics of foreclosure. The events of foreclosure, the timeframes, the disposition of the proceeds of sale, and the effects of the sale ? these are all important landmarks in navigating through the foreclosure ... more...


    More on foreclosure property...

     

    avoid foreclosure services
    Home
    search foreclosure info answers
    Search
    about  us
    About
    privacy policy
    Privacy
    terms of service
    Terms
    contact us
    Contact
    information for doeclosure specialists
    Agents
    Foreclosure Refinance: Stop Foreclosure Refinance , FHA Foreclosure Refinance, VA Foreclosure,
    Ways to Stop Foreclosure: How to avoid losing your home, Foreclosure Help Loans, We pay cash for houses, Foreclosure Mitigation, stop foreclosure in Alabama, stop foreclosure in Alaska, stop foreclosure in Arizona, stop foreclosure in Arkansas, stop foreclosure in California, stop foreclosure in South Carolina, stop foreclosure in North Carolina, stop foreclosure in Colorado, stop foreclosure in Connecticut, stop foreclosure in Dakota, stop foreclosure in DC, stop foreclosure in Delaware, stop foreclosure in Florida, stop foreclosure in Georgia, stop foreclosure in New Hampshire, stop foreclosure in Hawaii, stop foreclosure in Idaho, stop foreclosure in Illinois, stop foreclosure in Indiana, stop foreclosure in Iowa, stop foreclosure in New Jersey, stop foreclosure in Kansas, stop foreclosure in Kentucky, stop foreclosure in Louisiana, stop foreclosure in Maine, stop foreclosure in Maryland, stop foreclosure in Massachusetts, stop foreclosure in New Mexico, stop foreclosure in Michigan, stop foreclosure in Minnesota, stop foreclosure in Mississippi, stop foreclosure in Missouri, stop foreclosure in Montana, stop foreclosure in Nebraska, stop foreclosure in Nevada, stop foreclosure in New York, stop foreclosure in Ohio, stop foreclosure in Oklahoma, stop foreclosure in Oregon, stop foreclosure in Pennsylvania, stop foreclosure in Tennessee, stop foreclosure in Texas, stop foreclosure in Utah, stop foreclosure in Vermont, stop foreclosure in Virginia, stop foreclosure in Virginia, stop foreclosure in Washington, stop foreclosure in Wisconsin, stop foreclosure in Wyoming
    Foreclosure Laws: How to avoid losing your home, Alabama, Alaska, Arizona, Arkansas, California, South Carolina, North Carolina, Colorado, Connecticut, Dakota, DC, Delaware, Florida, Georgia, New Hampshire, Hawaii, Idaho, Illinois, Indiana, Iowa, New Jersey, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, New Mexico, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Vermont, Virginia, Virginia, Washington, Wisconsin, Wyoming
    Avoid-Foreclosure-Services.com is a free tool to find foreclosure information when your need it most. Avoid-Foreclosure-Services.com is not a lender, broker, foreclosure mitigation company, or affiliate of any foreclosure financial services. © 2007-2008