What Is Redemption?
Redemption refers to a period of time during which borrowers can pay off the outstanding balance owed on the mortgage to "save" their property. Redemption can happen either before the foreclosure sale or after the foreclosure sale.
Redemption before the foreclosure sale is allowed in all 50 states. If you would like to redeem your property to halt the foreclosure process, you will need to come up with enough money to cover the total amount of the debt, including the principal balance, interest, and associated costs.
Some states offer heightened protection to borrowers and allow the borrowers redeem their property within a period after the foreclosure sale. This right is sometimes called the statutory right of redemption. When you elect to exercise your statutory right of redemption, you will typically need to reimburse the person or entity who bought your property through the foreclosure sale for the original purchase price. Each state that have the post-foreclosure redemption offer different redemption periods, which could be as short as 30 days or as long as a year.
- What Is Foreclosure?
- What Are the Alternatives to a Foreclosure?
- What Are Fannie Mae Foreclosures?
- How Do You Buy a Fannie Mae Foreclosure?
- How Can I Prevent My Loan from Going into Foreclosure?
- What Are the Different Types of Foreclosure?
- What Are the Steps in a Pre-Foreclosure Procedure?
- How Many Late Payments Can I Make Before the Bank Starts Foreclosure?
- What Are the Steps in a Judicial Foreclosure Procedure?
- What Are the Steps in a Non-Judicial Foreclosure Procedure?
- How Does a Foreclosure Affect My Credit and My Future Options?