What is the mortgage redemption period after a foreclosure?

by oliver on September 30, 2010

Question:

What is the mortgage redemption period after a foreclosure?

Answer:

If a borrower defaults on his mortgage payments, the lender may request that the property be foreclosed on. If this happens, the lender will have the right to sell the property thru a foreclosure sale or public auction. If the house was successfully sold in the public auction or sale, the new owner can repossess the house.

Some states allow the practice of redemption rights wherein the previous homeowner is given the chance to reacquire the property from the new owner by paying the total amount of debt, in addition to the loan fees and interest. Only a few number of states allow the practice of this right so contat a real estate attorney to know the specific details for your state. If the borrower pays the total amount plus loan fees and interest, his home can be reinstated. This process is called the equitable right of redemption.

As the practice of redemption rights is dependent on the laws of the state, the length of the redemption period is also provided by the state. Some states would allow days or weeks while other states give borrowers a period of one year to complete their payments. If you want to know the details for the foreclosure process in your state, contact a real estate attorney.

Leave a Comment

Previous post:

Next post: