Right of redemption law (in Oregon)

[Joe Liu]

Hi guys, does anyone have experience with the "right of redemption" law? So what I am wondering is if a Judicial foreclosure happens and lets say the house is worth $200k. They for whatever reason let it go to something stupid like $30k in property taxes, could I go out, seek out these x-owners with the "right of redemption" and buy the right of redemption from them and then pay off there $30k + fees and then take over the property?

Also, that 2nd part of this law - "by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption". Does this mean, redeem the right of redemption within 6 months. Once I pay off the outstanding loan, after 2 days, I have to let the sheriff know?

Also, I heard that if there is a 2nd loan on the house, that the 2nd loan has 2 months right of redemption. If anyone is from Oregon, have you heard of this?

------------- pulled this off the Oregon website ------------
Is there a right of redemption in Oregon?

Oregon has a post-salestatutory right of redemption for judicial foreclosures, which would allow a party whose property has been foreclosed to reclaim that property 180 days after the sale by making payment in full of the sum of the unpaid loan plus costs and by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption.

Thanks!

Joe

[Roger Sharp]

Chandler Cole, at a sheriff's sale held in connection with a judicial foreclosure, the sheriff does not deliver a deed to the property. The sheriff only delivers a certificate of sale. After delivery of the certificate of sale, the property owner has a statutory right to redeem the property within 180 days of the sheriff's sale by paying the price bid at the sale plus property taxes, HOA dues and expenses the certificate holder has paid to protect the property from waste, plus interest on the above at the rate of nine percent per annum. Sometimes the amount required to redeem the property is far less than the fair market value of the property. This means the right of redemption has some value. The property owner can get some of that value by selling the right of redemption to another party.

Let's remember that those property owners going through foreclosure are the human beings most likely experiencing some true misfortune in the foreclosure scenario.  Their properties, often their homes, are sold because they cannot pay their loans, often because of job loss, divorce, injury, death in the family and other events outside their control.  On the other hand, persons who bid at foreclosure sales voluntarily go to the sheriff's auction to bid because they hope to get a bargain, and they often do.  These hopeful bidders certainly have the opportunity to learn about the right of redemption before the auction, and they should.   They should not be surprised if the bargain they hoped to obtain is taken away by exercise of a  right of redemption.

The short answer to your question is that the high bidder at the sheriff's sale from a judicial foreclosure has not bought the property.  He or she has only purchased a conditional right to own the property after 180 days in the future if it is not redeemed.  The property owner can sell his or her right to redeem to someone else.  

Property owners need to take care that they do not sell too cheaply.  I have seen terrible examples of unethical behavior related to the purchase of rights of redemption for far less than was fair.