In a typical scenario a bank or mortgage company files a lawsuit to foreclose on a home sure to a default in payment on the mortgage note. The lawsuit ends with the mortgage foreclosure and the sheriff sells the property at an open auction. From the date of the auction, the homeowner typically has 90 days to pay the amount bid at the sheriff’s sale and “redeem” the property. This process that focuses on redemption rights places the property back into the homeowner’s name free and clear of the mortgage that was foreclosed upon. During this period, the owner has no obligation to pay the mortgage note and can list the home for sale or sell the redemption rights to another person or entity.
The process is legally referred to as the “equitable” right of redemption where equitable means “fair” in this scenario. The equitable right of redemption allows the homeowner to sell the property or the redemption rights to the property and capture some, or all, of the equity in the property. The equity in the property is created by a combination of increase in value over time and reduction of debt as the mortgage has been paid.
What are Redemption Rights?
Redemption rights are what let homeowners redeem foreclosed properties. These rights work by paying for the foreclosed property, including any fees and interest. Homeowners have the option to sell their rights, but it is essential to make sure they get a fair deal. There are many scammers and unethical businesses out there that can cause more harm than good in these situations. If you are facing a foreclosure sale in Johnson County reach out to our experts to learn what you can do to aid yourself through this process.
The homeowner whose residence is in foreclosure may be approached several times with offers to purchase their redemption rights. A wise homeowner will consider such offers like foreclosure assistance carefully and do necessary background checking before signing any documents. A consultation with an attorney who is familiar with the redemption laws is advisable. There are many people and entities like Cherry Park Properties; however, they do not always have the experience needed to achieve successful results. We are your local, friendly real estate investment team focused on helping individuals and families keep their homes. Our primary focus lies within lease option foreclosure, acquisition of first and second mortgages, and redemption rights in Johnson County Kansas. We want to provide you with a hassle-free and pleasant experience no matter what services we are implementing. Cherry Park Properties can present real opportunities to help you get out from under the burden of foreclosure. Contact us today at 913-839-2345 to discuss your choices when it comes to your redemption rights in Johnson County.