Q: I listened to your radio show last Saturday. My home has been foreclosed on and I am selling it in the redemption period. You mentioned a difference in selling a foreclosed home as far as funds needing to be somewhere seven days ahead of time verses one day on a normal sale. I didn't catch the whole conversation but I am concerned all the parts won't come together on the sale. My agent has called the mortgage company for the necessary paperwork but he hasn't worked with this type of sale before.
A: Borrowers have redemption rights in Missouri only if the buyer at the sale was the lender, but not if the buyer was anyone else. Does that make sense? However, the redemption requirements are so cumbersome that most borrowers do not take advantage of this right. First, the borrower must give advance notice of their intent, either at the sale or 10 days prior to the sale. Second, the borrower must post a bond within 20 days after the sale, which provides an amount equal to the following: the mortgage interest, any secondary loan interest, and taxes that will accrue for one year after the sale; foreclosure expenses; legal fees; damages; plus 6 percent interest. If able to meet these requirements, the owner can redeem the property within one year by paying off the amount owed plus any fees.
Here is a link that you may find helpful
http://www.foreclosureuniversity.com/studycenter/foreclosurelaws/missouri.php
Door 2 Door with David Van Noy Jr. on Hot Talk 1510 Saturday mornings 10am-11am
