Investors Purchasing Real Estate at Sheriff’s Sales
Are you a real estate investor who has purchased real estate at a judicial foreclosure sheriff’s sale? Are you looking to obtain the deed from the sheriff’s office so you can sell the property? I can help you get that deed, no matter what county in Oregon you purchased the property in.
Here in Oregon when a judicial sale happens the purchaser at the sale gets a certificate of sale, equitable title to the property, and possession of the property. The former owner loses possession during the redemption period, and only retains legal title.
Oregon Redemption Rights
Under Oregon law, the former owner (and some other parties as well) could get the home back after the foreclosure by “redeeming” it — that is, by paying the purchase price that the purchaser paid at the foreclosure sale, plus interest and expenses, within 180 days of the date of the sale. If the former owner does not redeem within the 180 days, the purchaser at the sale then gets a sheriff’s deed. That gives the purchaser legal title to go with the equitable title it already possesses.
Besides the former owner, other lienholders on the property can redeem the home after a foreclosure. Creditors who had liens on the house have a 60-day redemption period. If the IRS held a federal tax lien on the home, it has a 120-day redemption period. These creditor or IRS redemptions don’t happen very frequently.
Solving the Redemption Problem
Nevertheless the purchaser at a sheriff’s sale often has good reasons not to wait 180 days before getting the sheriff’s deed and legal title to the property. In particular there would be two reasons for the purchaser to purchase the redemption rights in advance of the auction: First, if you are the successful bidder at auction, then you can initiate your rehab without any concern about waiting 180 days for the redemption rights to expire: you already have them. Second, if you are not the successful bidder but own the redemption rights then there still COULD be opportunity to obtain the property from the successful bidder, which in most cases is the bank/lender.
The former owner can sell or assign the right to redeem to someone else, including the purchaser at the sale. That can happen either before or after the foreclosure sale. The person can then exercise the right to redeem after the sale.
Getting the Order for the Deed
The purchaser at a judicial foreclosure buys the redemption rights directly from the title owner, generally through a bargain and sale deed. If you purchase a property at a sheriff’s sale and want the deed to be issued prior to the expiration of the redemption rights, you need an Order Directing Sheriff to Issue Deed from the court. If you need to obtain that Order from the court, you will need an attorney to do the work to obtain that Order and, once the Order is obtained, to direct the Sheriff to issue the deed in your name.
If you need the deed to a property you recently purchased at a Sheriff’s sale, I am here to help you obtain that deed in the most expeditious manner possible. I have helped many investors all over the state of Oregon quickly obtain their deeds in hundreds of cases, and I am always ready to help you as well.