Can I Sell the House During the Redemption Period?

To answer this question, first we must define what a Redemption Period is. In many states, after the sale of your foreclosed home at auction, you have a period of time before you are evicted.

It is called the Redemption Period because you have the opportunity to sell or refinance the property and "buy it back" if you can meet the price at auction.

So, the short answer to the question "Can I sell the House During the Redemption Period?" is "Yes!"

You have an opportunity here to stop the foreclosure evection process. Banks just have to sit and wait for the period to be over before they can put the home into a REO.

But you do need to act quickly in most cases. period of time may be a few days or as much as a year. In some jurisdictions, you may need to remain in the home for the Redemption Period to be in effect.

You still will need an exit strategy if you want to keep the foreclosure off your credit report and stop the foreclosure process. Your plan can be the key factor in whether or not you are able to remain in the home.

If you live in a state that just allows for a few days to redeem the house, you will need to take immediate action. This generally means lining up a buyer with cash in hand.

However, if you live in a state like Ohio, you have a full year to sort out the options which may include simply getting caught up on the mortgage yourself or securing a second on the house. Usually though, getting a loan at this stage will require that you have equity in the home and are able to find a hard money lender.

If you are able to sell the house for the amount owed during this period, you will also be able to walk away with little damage to your credit. This is the most common option. Sometimes you can find an investor who will take the house. Other times, you can sell it through a traditional real estate process. Selling the home is the most common exit strategy following a sheriff's auction.

There is a possibility that the lender will actually take less than the amount owed if you can find an investor. This is because you are saving them the time and expense of evicting you and you are taking a property off their hands. If you are not able to sell the house, the bank will have to - and they know they may have to take a steep discount to do so.

Another possible action you can take is to have a trusted friend or family member purchase the home and lease it back to you. This can often save the property for you if you are in a temporary difficult spot. Put everything in writing and treat the situation as a business contract in order to preserve relationships.

In short, the answer is "Yes" to "Can I Sell the House During the Redemption Period."

Edward