Buying back our foreclosed property???

[Sweetpea3829]

Hi Everyone!

Some background....our bankruptcy was discharged in 2007. The first foreclosed multifamily was that same year. We've paid on time, never been late on the second multifamily (which happens to be our residence) since then.

The property is 100K underwater and Citi thus far is refusing to modify on the basis that we have too much in liquid assets and that we're not in default.

We're letting it go into default and clearing out our liquid assets (approx 6K).

If Citi refuses to modify even after that, then we intend to walk away (buhbye).

I spoke with our mortgage broker and he said that the waiting period before we could get a new mortgage starts from the date of discharge for most programs.

My question is this...it'll be approx 1-2 yrs before Citi will actually be able to foreclose on our property (and we intend to drag it out as long as possible). During that time, we will be socking away cash and at the end of that period, we should have quite a bit of money to put down on a new property.

Can we buy back the property that Citi will be foreclosing on? We would be able to buy it significantly less than what we currently owe for it. Is this possible? What if a friend buys it and then we buy it from that friend?

Any thoughts on this?

[Pandora]

does your state offer a redemption right, and if so - how long is it? Usually its only 12 months from the time of foreclosure. You need to look up your states laws regarding redemption and the "do's and dont's", it will have them listed.

[Sweetpea3829]

This is what I found regarding redemption in RI...I have no idea what that means btw

Is there a right of redemption in Rhode Island?
Generally No. In anon-judicial foreclosure Rhode Island has no post sale generalstatutory right of redemption, which allows a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs. In certain judicial possessory actions a right to redemption will be permitted up to three (3) years.

[newbie2]

Hi Everyone!



Can we buy back the property that Citi will be foreclosing on? We would be able to buy it significantly less than what we currently owe for it. Is this possible? What if a friend buys it and then we buy it from that friend?

Any thoughts on this?

If the home becomes fully bank owned and your friend wants to buy it, they will be signing a document at closing (and most likely a clause in any purchase offer addendum) stating they are not related to you nor do they know you. If this is part of the bank owned purchase package contract language they would be committing fraud by signing it. (Most bank owned contracts will have this language.)

[Sweetpea3829]

Hmmm....that's interesting Newbie. So then am I right to assume that they wouldn't sell our bank-owned property back to us then?

That's ok if they won't...we're perfectly content to walk completely away. We hate being landlords anyways. But...if we could buy back the house for pennies on the dollar to what we owe now...we'd love to.