Right of Redemption in Oregon

[Robert Smith]

Hi,

   I'm hoping someone can shed some light on the right to redemption laws in Oregon. I have read several posts here that cover it well but I have a specific question I am not clear on. It is very possibly a simple answer but I'm sure there is someone more experienced that can tell me definitively if I've got the right idea. There is a property coming up for auction later this month in Portland that we are interested in but I'm nervous about buying something that someone else has the right of redemption to. The original debtor is deceased and the property has gone to two heirs. My assumption is that both the inheritors (they are siblings in this case) would have to sign in order to give up the right to redemption, if an investor were to approach them about it. It seems self explanatory but I don't want to miss something and find out about it on the back end. I haven't had any luck contacting wither heirs but have only been trying for a couple days. 

I'm hoping I can catch the attention of some of the gurus that chimed in on other's local posts. Thanks. 

[Jay Hinrichs]

@Rick H.  in our market here in Oregon its a cottage industry running around and trying to buy redemption rights.. and the folks that do it are doing it purely to shake down those who bid at sale and don't understand how the rights work.

or the bigger players will only bid on deals they own the rights to ...

there is a 6 month right of redemption.. and the sales are uber competitive.. so the chance that it goes for a number that another investor who may own the redemption rights to  would redeem is remote.. and even if they do they owe you 9% interest.. and any cost you may have fronted to keep the property from getting damaged.. however if you jump in and rehab it you would lose those dollars.

the redemption buyers buy the rights by getting the property deeded to them.. usually for 100 to 500 bucks sometimes more if there is massive equity .... and they usually record the deep a day or two before the sale.. then go the sale and see if someone buys it.. then walk up to them waive their deed and try to negotiate to sell the rights.. usually 5 to 10k.. because with the rights you can start your project right away with out them you need to wait 6 months... so it become the cost of money and time equation.

and as an aside generally there are 100 sales posted and only 5 to 10 actually go... but it sounds like this one might go if there are no heirs to throw it into BK or they are working on a loan mod of some sort.

good luck with it.