All Forum Posts by: Roger Sharp

Mike Gruol and Jesse Rivera, you guys posted on this a long time ago, but  I just saw your posts.  The purchaser at a sheriff's execution sale is definitely entitled to possession following the sale, subject to possible rights of a tenant during the redemption period if the tenant pays rent.  The statute that addresses this is ORS 18.946.

The sheriff only issues a certificate of sale at the time of sale.  The sheriff's deed does not come until after all redemption periods expire.  This makes obtaining financing during the redemption period tough, but the right of possession is controlled by the referenced statute.

Like Jesse, I am not an attorney.  I am not giving legal advice.  I have looked at this issue for a personal redemption transaction.

Roger Sharp

Brain Bellairs,  for any Oregon redemption you should ignore the process described by Lee Allen .  That  process may work where he is from, but that is not how it is done in Oregon.  

There is a clearly defined process for redeeming a property sold by the sheriff.  It is described in the the applicable Oregon statutes, ORS 18.960 to ORS 18.985.  I am not an attorney, and I will not attempt to summarize here the long and detailed procedural steps and deadlines that are set forth in the statutes.   However, if you do not follow the procedures exactly within the time allowed,  you might find yourself with a worthless expired right of redemption.

Roger Sharp

In Oregon the purchaser at the sheriff's sale conducted pursuant to a judicial foreclosure is entitled to immediate  possession and will often seek a writ of assistance to obtain possession before the redemption period expires.

I would like to meet those of you who have stated you will be attending.  See you there.

Chandler Cole,

The owner is the judgment debtor.  The owner can convey the owner's right of redemption to another, and that person can redeem just like the owner could have..

Other lien holders also have the right to redeem, and these rights of redemption can also be conveyed to others.   

These are statutory rights of redemption,  so strict compliance with the statutes is required.

Roger Sharp

John Kevin Hunt,

Nothing is as simple as the two choices you presented.  

When the property was sold the sheriff collected the money and paid it to the court.  The court distributes the money owed to the foreclosing lender and then holds the surplus funds.  If there are junior lien holders, the junior lien holders can apply to the court for distribution of amounts due them from the surplus funds.  The foreclosed homeowner can apply to the court for distribution of surplus funds which need not be paid to the junior lien holders.  

After acquiring the right of redemption, your associate of homeowner (AH) must still go through the statutory process to redeem the property.  This requires delivery of a notice of redemption to the sheriff, with copies served on the person who purchased at the sheriff's sale.  To redeem AH will need to pay the full $220k to the sheriff, together with interest, etc.  The sheriff will process the check and eventually issue a certificate of redemption.  The sheriff will pay the $220k plus to the person who purchased at the sheriff's sale.

Of course, AH can also negotiate with the person who purchased the property at the sheriff's sale.   To force the redemption, however, AH will need to follow the statutes set forth on ORS 18.960 to ORS 18.985.  

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.    

The Oregon statutes define how redemption works in Oregon.  The specific statutes to look at are ORS 18.960 to ORS 18.985.   I sent you a message inviting you to call me to discuss the situation.  I can answer your questions.