Travis Jones, Rush Properties former president, points out that foreclosure is a confusing matter for many homeowners. After all, the Kansas-based real estate expert has been assisting homeowners with their foreclosure needs for more than 15 years. Today, Travis Jones of Rush Properties talks about property redemption, something he says everyone who carries a mortgage needs to understand.
According to Travis Jones of Rush Properties, RealtyTrac recently found that the number of new foreclosures is steadily decreasing. The foreclosure listing firm stated the country has seen an 11 percent reduction from the previous year. The decline in foreclosures is the result of several factors, says Travis Jones, Rush Properties’ former president.
Q: What factors contribute to the steady foreclosure decline?
Travis Jones, Rush Properties: The economy seems to be improving. New jobs combined with low mortgage rates means that the worst of the recession is over and the real estate market is on its way to recovery.
Q: Were any states hit harder than others?
Travis Jones, Rush Properties: Yes, indeed. Florida and Nevada have the most foreclosures in the country. One of every 300 homes in Florida is in foreclosure. Nevada is second, Illinois is third.
Q: How are rising home values helping with foreclosures?
Travis Jones, Rush Properties: Rising home values help homeowners establish more equity in their house, which can lower foreclosure rates by helping them refinance their mortgage or help them sell their house at a higher price. Fewer foreclosed homes and higher prices are great news for all homeowners since the foreclosed homes won’t keep dragging down the value of nearby properties.
Q: Are we still in a buyer’s market?
Travis Jones, Rush Properties: We are, but we’re slowly transitioning into a moderate seller’s market. Since the property supply is tight, many properties are starting to attract multiple offers, which ultimately creates a sellers’ market. A good indication is that bank-owned homes are now selling for higher prices, motivating banks to authorize more short sales that help homeowners avoid foreclosure.
Q: What about the homeowner who is still facing foreclosure? Does he or she have any rights?
Travis Jones, Rush Properties: Yes, he or she needs to understand about their redemption rights.
Q: What are redemption rights?
Travis Jones, Rush Properties: In Kansas, the sale of a foreclosed process can move fast. But since a homeowner has redemption rights, a Sheriff’s Deed cannot be issues unless the property is not redeemed. That can be anywhere from 3 to 12 months after the sheriff sale. After the sheriff sale, the homeowner can stay in the home during the redemption period.
Q: What can the homeowner do during the redemption period to avoid losing his or her property?
Travis Jones, Rush Properties: Well, the homeowner can keep the house by paying the full amount of the successful bid at the sale in cash which is referred to as redeeming. If amount is not paid into the courts by the end of the redemption period, the property will go to the winner also known as the holder of the certificate of purchase from the sheriff sale.
Q: Do they have a responsibility to maintain the property in any way?
Travis Jones, Rush Properties: Actually, yes. They should also maintain the property to prevent waste, keep utilities’ active, and keep the yard mowed. If the homeowner does not, the redemption rights could be extinguished.
Q: What happens if the homeowner refuses to vacate the home?
Travis Jones, Rush Properties: The homeowner will become subject to eviction, which would lead to additional costs and fees. The holder of the certificate of purchase will need to file a court action to have the sheriff assist in removing the previous owner.
Q: You mentioned that the redemption period varies from 3 to 12 months. What is the length of the period based on?
Travis Jones, Rush Properties: It all comes down to how much the homeowner pays toward the original mortgage debt. If he or she pays more than one-third of the loan’s principal balance, he or she has 12 months to redeem the property. But if he or she pays less, there are only three months to redeem.
Travis Jones of Rush Properties is recognized in Kansas and Missouri as a leader in the real estate industry. Through his two companies, Travis Jones, Rush Properties founder and a partner in Cherry Park Properties, has served clients by providing assistance with various mortgage issues. Travis Jones of Rush Properties and Cherry Park Properties assists individuals seeking to purchase and improve distressed properties for resale.