Redemption period law in Texas, do i get the mortgag pay off if t

[Edward Adams]

i just bought a house in HOA foreclosure and it has a first lien mortgage on it, if i pay off the mortgage and previous owner claim the house in redemption period does he have to give me back the mortgage pay off amount?

[Nancy Truong]

Quote from @Edward Adams:

@Bruce Lynn@Don Konipol@John Sayers@Rick Pozos@Nancy Truong here is an update with situation. 

1- i cant make any payment since the loan is already in default. 

2- i need prior owner agreement to be able to get a reinstatement quote from bank. (i cant get hold of him)

3- the only option bank give me is to get a pay off quote. 

i spent 9K in auction so far. pay off quote will be around 130K and i need 10K in rehab. house worth 270K

would you risk 149K and move forward (redemption end at end of the year) or call it a lost at 9K and move on ? 

Don't call it a lost just yet. There's some questions that need to be answered. What type of loan is it? Do you know? If you don't know, it should state it on the deed of trust. Depending on the loan type, foreclosure "judicial" or "non-judicial" procedures are different. Additionally, if the bank chooses to foreclose if you don't payoff the loan, there are several ways to prevent or delay the foreclosure sale. 

Prior to foreclosure, the bank must provide you notices. In short, don't give up yet. 

I disagree with Rick Pozos, while it may have worked for him in the past, it doesn't necessarily work all the time and may actually be a violation (depending case by case of course). The loan is considered confidential information, but if you have interest in the property, such as being the homeowner, the bank is not required to reinstate but you can pay off the loan. In fact, if the bank reinstates, usually, then the loan is no longer in default. Some banks will not allow reinstatement because of the financial incentive to just foreclose. 

My law partner specializes in foreclosure law. Let me know if you want to connect with her.