I recently read that if I purchase a foreclosed property from an auction in my state, I would have to wait for the 12 month redemption period, or try to shorten the wait before doing anything with the property. Does this period also count when purchasing a property through a lending company such as a bank?
Depending on your state, the redemption period is either before the auction or after the auction so to speak. You need to find out which is the case for your state…
Generally speaking, if you use trust deeds as you instrument of security, then the redemption period is before the auction. So when it foreclosures, it becomes the banks and they turn around and list it with their listing agent of record.
If your state is a mortgage state, the redemption period is after the auction. The redemption period varies within states as well. Could be 3 months, could be 6 months or even more after the auction.
If you purchase through a bank, they have already been through the redemption period process (whatever that might be) so that way they can issue you a clean title. Whatever you do, DO NOT do anything to the property before this period is over.