[WSBARP] Condo Foreclosure Basics

[Jim Doran]

I have client that just bought a condo at a Sherriff's sale for $15,000
which were the dues owed by the owner.  The underlying debt is with Bank of
America for $120,000 but the property has a value of $70,000.  B of A did
not show up at the sale.  

 

What happens?  Client gets the property subject to the Bank of America deed
of trust, right?  

 

So, the deadbeat prior owner won't pay, that's for sure.  My client doesn't
want to pay $120,000 to B of A.  So I expect there will be a foreclosure by
bank of America on the new owner.

 

What is the function of the "Redemption Rights" in the Bank?  Does the Bank
have to buy the place back from my client for what she paid at the sale?  

 

A quick overview of how this works would be appreciated.  Just the
framework.

 

Thanks, 

 

James R. Doran

Attorney at Law

100 E. Pine Street - Suite 205

Bellingham, WA 98225

(360)393-9506

jim at doranlegal.com <mailto:jim at doranlegal.com> 

www.doranlegal.com

 

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