We Buy Rights of Redemption
Right of Redemption
An equitable right of redemption is a right that gives borrowers the chance to pay the outstanding debt on a mortgage after default but before foreclosure occurs. Many states, including Oregon, allow redemption, but the laws vary on how long the period of redemption lasts. Oregon has a post-salestatutory right of redemption for judicial foreclosures, which would allow a party whose property has been foreclosed to reclaim that property 180 days after the sale by making payment in full of the sum of the unpaid loan plus costs and by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption. Bridgeview Cash for Homes purchases these Rights of Redemption from their holders. Feel free to contact us today if you have the Right of Redemption to a house in the Portland, Oregon area that you want to sell.
How We Purchase Redemption Rights
The redemption price is determined by a statutory formula and may be less than the property’s fair market value or the total preforeclosure debt on the property. Let’s say the fair market value of the property is $300,000. The property has a first mortgage of $200,000, a second mortgage of $90,000, and a mechanic’s lien for $25,000. The lender in the first mortgage position is foreclosing. At foreclosure, the second mortgage and mechanic’s lien may be wiped out. The person holding the right of redemption could exercise that right after the foreclosure sale and pay the redemption price, which would likely be $200,000 plus interest, late fees, and costs.