A short sale can be done anytime during the default prior to the lender taking the property via the sheriff’s sale, courthouse steps, trustee sale, or foreclosure sale - it is called different names in different areas. we’ll use the term “sheriff’s sale” to keep it simple.

• Several states have what is called a “redemption period” after the foreclosure sale.
• Most banks will still negotiate a short sale during the redemption period.

When a property has a redemption period and has “gone back” to the bank at the sheriff’s sale, contact the homeowners and speak with them about working out a short sale with their bank. Remember, technically the property still belongs to the homeowners until the last day of redemption.

It is important for you to understand that in a redemption period homeowners cannot make up back payments. Their only option is to pay off the loan completely or the bank will take the property. Selling it to you is considered paying it off.

Some areas have very long redemption periods (up to two years), which make it almost impossible for investors to bid on property at the sheriff’s sale itself.

To determine if you are in a redemption state, simply call your county courthouse and ask for the foreclosure department. The clerks who answer the phone are usually very cooperative in answering questions and can tell you how long your redemption period is, if you even have one.

Is there a benefit to living in a redemption state? Absolutely not. Where ever you live, is great!