Comments on: Why Buying Properties at Sheriff Sales in Minnesota is a Bad Idea

By: Scott Ficek

Scott Ficek — Thu, 29 Jul 2010 04:52:01 +0000

No. That can be handled at the closing. The title people get the pay off for buying the certificate and then do the deed transfer all at the same time.

By: mike kuehl

mike kuehl — Thu, 29 Jul 2010 04:48:13 +0000

Thanks for your reply—,the owner is going to redeem and sell to another party–does he need to redeem prior to selling to the second party or can he use their money to satisfy the redemtion (redeeming after the sale)–keeping in mind that the property was purchased by a private individual

By: Scott Ficek

Scott Ficek — Wed, 28 Jul 2010 17:09:51 +0000

If this is in Minnesota, no, the bank’s right is to do the foreclosure and that is all they get.

By: mike kuehl

mike kuehl — Wed, 28 Jul 2010 03:21:31 +0000

there was property with a mortage of $226,000– sold at Sherriff sale for $145,20 ( bank bid $145,000)-purchased by private individual– Owner is now going to redeem and sell for $170,000- does the bank have any recourse since they were not the buyers at the Sherriff sale ?

By: K

Wed, 30 Jun 2010 13:51:43 +0000

I received more info from our lender. He said the reason they can not do a traditional mortgage is that there is no purchase agreement. Since we are redeeming an interest in the property vs. purchasing it, one is not required, but is there any reason why we couldn’t draft up a purchase agreement and have the bank as the seller and owner sign off on it?
Thanks for your input.

By: Scott Ficek

Scott Ficek — Tue, 29 Jun 2010 22:54:16 +0000

You can refi after 6 months. Craig’s List is a great resource for finding hard money.

By: K

Mon, 28 Jun 2010 15:23:03 +0000

Thanks Scott. That is pretty much what the consensus is when I ask.
Question 1) Do you have any resources/leads of hard money lenders?
Question 2) We are not planning on flipping this home, but get a hard money loan, then refinance and live in it long term. How long after the initial purchase can you do a refi?

By: Scott Ficek

Scott Ficek — Sun, 27 Jun 2010 15:05:26 +0000

You may need to use a hard money lender to buy the house and then turn around and refinance with a traditional lender after you own it.

By: K

Sat, 26 Jun 2010 02:49:18 +0000

We have an opportunity to file an intent to redeem on a house that is currently in the foreclosure redmeption period. (We were able to obtain this right to redeem by buying the junior lien-holder’s rights and having those rights transferred over to us) Our question is how do we obtain financing? We assumed that a traditional mortgage would be able to be applied to the purchase, but we are finding that the lenders we have contacted are telling us that we can not use a traditional mortgage. Any ideas?

By: Scott Ficek

Scott Ficek — Tue, 15 Jun 2010 02:16:42 +0000

The bank only gets back what they paid at the sherriff sale. They can always come after your cousin for the deficiency.

Hard to say on the income taxes. You will need to check with a CPA.