I am working on a short sale with Citi, the investor is Wells-Fargo, and Citi is telling me that
the investor will not allow a short sale in the redemption period. I tried
calling Wells directly since they are the investor, but didn't have much luck
there. We are in Minnesota, where there are 6 month redemption periods. Any suggestions?
it is highly unusual that Wells is an investor on anything...I am a legal adviser to them. There must be an investor behind Wells....in any event, they are taking a legally supportable position since the home owner has the legal right to redeem and if Wells accepts the offer and transfers title, the new buyer can be displaced and the sale undone.
The only thing that may help is if the home owner signs a release (probably in exchange for some money) . They can relinquish their right to redeem. This does not have full legal support but it is better than nothing
We have been doing short sales during redemption periods since the beginning of time. The home owner relinquishes their legal right to redeem at the closing when they signoff on the closing documents.