Eisrael Gomez Realtor - Monterey County Blog

Question:  "If a home is sold in preforeclosure how long can original owner come back and redeem the property?  I've heard they can come back after one year." 

Pre-Foreclosure would mean after a bank provides a "Notice of Default"  and before the auction.  From what I have seen, this is when you can get the best deals on the home. 

However, to answer your question.  If you are an investor:

1)  The homeowner foreclosed upon has 1 year to redeem the property. 

2)  A buyer of the foreclosure usually can't be represented by the agent. 

Here's the bottom line:  The above are true, unless the buyer/new owner is a bonafide buyer i.e., someone who is going to live in the property.  So, if the home is going to be owner occupied, an agent can represent you and the owner could not come back to redeem the property. 

Otherwise, if you want your realtor to represent you, they would have to use the California Association of Realtor's form that requires a bond.  The bond is usually so cost prohibitive and usually not available to realtors.  It becomes too much of a risk that the buyer will come back to claim the property if you bought it as an investment and not to live in.

The above applies to pre-foreclosures (after a "Notice of Defualt") or homes prior to being auctioned.  If you have any comments or questions please feel free to post it here, email or call me at 831-809-8266

Eisrael Gomez