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What happens to your money....

Posted on: Thu, 03/19/2009 - 21:54
What happens to your money....

Sorry if this was answered already, couldn't find the answer. I'm new at all of this so pardon my ignorance on this matter. Let's say that you got a real good deal on a foreclosure. You have purchased it and you decided to keep for a rental. You have gone in and put several thousand into. It's sparkling and smells of apple pie now (lol). Then you learn that the person that has lost it came into some money and wanted their house back. I'm in TN and according to Dean's book, "Be a real estate millionare", the last owner has a redemption period of 730 days (page217). Am I reading this right? So what happens to the funds that you have invested? I spoke to a loan officer at a bank (which i never use because they were extremely rude for no reason)and he said the owner has first rights and I would lose everything that I invested. So ummmmmm, would someone give some insight into this..Thanks so much

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Posted on: Thu, 03/19/2009 - 22:06 #1
hmmm

As far as I know, the owner has the right to purchase it back from you, not just take it back. That would just make no sense.
As far as I can understand, the last owner may come to you and say that they want to buy it back, at which point you would get it reappraised and so on.

Am I wrong people?

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-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --


Posted on: Thu, 03/19/2009 - 22:20 #2
730 days seems like a lot. I

730 days seems like a lot. I had thought it was 75.
Varies by State I am sure.


Posted on: Thu, 03/19/2009 - 22:34 #3
Tax lien

If you purchase a house in forecloser then the house is yours.
I thought in tax liens homeowners had a certain time frame to
pay off any debt that was owed.

Randy


Posted on: Fri, 03/20/2009 - 02:53 #4
really stumped

Thanks rberry61, Most according to, Dean's book, have 365 days. but Minnesota has a redemption time of 1825 days!!!!

Thanks Yur177, going by bank guy..he made it sound as if the previous owner would only have to make only good with the lender. I don't really believe that guy so i'm going to talk to another bank to see if they say something different.

Thanks also Randy, I am going strictly on what Dean wrote in his book "Be a real estate millionare". Do you think i've misunderstood what is meant by the redemption period..as in the lender could alott them UP TO the 735 days or what..? And you are right about the tax liens too they do give them certain amount of time to correct.

any other thoughts??? Thanks, William