Extending the Redemption Period?

I recently had some clients that were nearing the end of their redemption period.  They had received an offer at the last minute and wanted to ask their lender to extend the redemption period. We were prepared for the unlikelihood that this could happen, but still submitted the offer on the off chance their bank would do something to make it work out for the sellers. 


Unfortunately, my sellers were unable to get their redemption period extended.  After speaking with the foreclosure attorney, I found that the lender could do nothing to extend the redemption period in order for this to work for the sellers.  However, if the sellers wanted to extend there is another trick that may have worked.  The trick would be that of the sellers filling bankruptcy.  If the sellers were to file bankruptcy, the redemption period could be extended another 60 days from the date they filled.  My sellers had no intentions of filling bankruptcy at the time and therefore this 'trick' wasn't truly an option. 


I just wanted to share this scenario, in the event you or someone you know might be in a situation where an offer comes late in the redemption period.  If you have questions on redemption periods, click here or feel free to give me a call or send an email.