If we buy a foreclosed property, then a third party that has bought the rights of redemptiongoes ahead and redeems it, what do we stand to loose?
Question Details:I am looking at purchasing a foreclosed property in the state of Alabama. A third party has bought the rights of redemption. If we purchase this property, then the third party exercised their right to redeem it, how much money would we loose? I would assume closing costs, moving costs, etc. But what about our downpayment or the difference in our purchase price ($245,000) and price of redemption($160,000)?
I suggest that you consult with a real estate attorney after reading the answer to your question. First, if you purchase foreclosed property subject to the rights of redemption of a third party, if the third party redeems the foreclosure, you get back all that you paid for the property (down payment, improvements and the like) plus the allowed rate of return for interest in your state.
Before you make the purchase, sit down with an attorney in the county where the property is located and get the full legal picture of what you may be getting into if you purchase the subject property where someone may have the right to redeem the purchase of it.
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