Buy Back of Property after Auction sale and expenses against property


#1

If someone has the right to ‘buy back’ the foreclosed property (in CA), and the property has already had all the back property taxes paid up and remodeling started/finished. Do they still only have to pay the amount that the property was sold for at Auction? What about all the expenses put into the property after the foreclosure and eviction?


#2

There is no “right of redemption” after a Trustee’s Sale under a Deed of Trust in Ca.
The IRS, if they had a tax lien against the property, has 120 days to redeem the property and “take it over”.


#3

Vicki,

Miketh is right. The trustee who authorized the property sale, a court, and the IRS are just about the only entities who can have something to say (i.e. intervene, overturn or in the case of the IRS redeem w/in 120 days) post trustee sale.

Perhaps you’re thinking about those rare occasions when (prior to the issuance of the trustee’s deed upon sale - TDUS), a trustee opts to rescind a trustee sale? The most common reason for a “rescission” is a when a foreclosed upon homeowner filed a BK before the trustee sale and properly notified the trustee … In other words, the trustee erred by going forward with the sale and is now trying to remedy the situation by rescinding the sale … Again, this rescission can happen, but in most cases BEFORE the TDUS has been issued. That is one good reason why a trustee sale buyer should defer any major rehab/fix-up expenses on their newly acquired property until AFTER they have received and recorded the TDUS (about 5 to 10 days post auction on average). It is much more difficult for any party (IRS redemption excepted) to overturn a sale AFTER the TDUS has been issued, and the new buyer most likely would have to be compensated for any expenses they’ve incurred to fix-up/rehab the property.