All Forum Posts by: Kerry W.

Thank you for all of the replies. To answer my own question if anyone is interested, the owner needs to pay off the amount owed to the association ($6000) + cost of redemption + INTEREST ONLY on the $41k which is determined by the association, usually 8%. The Sheriff pays of the amount owed to the association and holds the rest in escrow to be returned to the person purchaser of the lien. So in total, she will have to pay off around $9400. I am not an attorney but that is the info my attorney gave me. Thanks to everyone for all help and responses!

Thank you Wayne, that is a great point and I will look into who holds the $. She is happy to even pay off interest from the Sheriff Sale bid. I am just wondering if anyone knows in the state of MN if she is required to pay off the full bid at the Sheriff sale or the actual amount owed + fees by the end of the redemption period?

Hi Brent, Sorry if I wasn't very clear...I am usually involved in purchasing notes, liens, etc. In this situation my friend had her association that was $6k foreclosed on and a 3rd party bought it at sheriff sale auction for $41k. Although she owns her property with no mortgages and just the association lien, she went from having to pay $6k to $41k? I would have loaned her the $ but thought she would still have the 6 month redemption period to pay off the lien at $6k + fees. 

Wow that is crazy, it's unfortunate that I did not know that before the sale. I was told that the owner would have to pay off what was owed on the date of the Sheriff Sale (plus fees, interest, attorney fees, etc) and not the bid amount. I was told that the purchaser of the lien would get paid off the amount they bid by the sheriff cutting them a check for the difference. Is there any way to pay off the $6000 if I can loan her the cash tomorrow or is it too late since the sale already took place a few days ago? It just seems crazy that she owes $41k on a $6k lien? Thanks for your quick response.

I am wondering what will happen to a condo in MN that is owned free and clear except for an association lien. The lien is for $6000 and went to sheriff sale and bid at $41,000. The owner wants to pay off the lien before the end of the redemption period and wants to know if she has to pay off $6000 (this bid was given to us days before the auction from the association's attorney) or the $41,000? I buy liens and notes but not sure from a homeowners perspective what their payoff would be? Any help is greatly appreciated.