Q: Can I purchase the redemption rights for $1000 from the owner on the property if the sheriff's sale happen last week?
The home is worth $65,000 to $70,000 and the individual that won the bid from the bank bid ,$46,500
A:
Yes.
The homeowner can alienate or sell their redemption rights. However, the Michigan Court of Appeals recently held in a case held that the mortgagor may, after the original mortgage transaction, sell or convey his or her equity of redemption to the mortgagee by a separate and distinct contract entered into for good faith and for valid consideration, but “the exchange must be fair, frank, honest, and without fraud, misconduct, undue influence, oppression or unconscionable advantage of the poverty, distress or fears of the mortgagor.”
This means that you must have the proper conveyance and releases. Otherwise, you open yourself up to a lawsuit.
Contact a competent real estate attorney. www.provenresource.com
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