Redemption PeriodCredit Repair Definition
A specific timeframe after a foreclosure sale during which the borrower can reclaim their property by paying off the debt.
Definition
A redemption period, in the context of foreclosure, is a legally defined timeframe *after* a property has been sold at a foreclosure auction during which the foreclosed borrower (and sometimes junior lienholders) has the right to buy back or 'redeem' the property. To redeem, the borrower typically must pay the full foreclosure sale price, plus any accrued interest, taxes, and costs incurred by the purchaser. The existence and length of this 'statutory redemption period' vary significantly by state; some states offer generous redemption periods (e.g., six months to a year), while others offer very short periods or none at all, especially after non-judicial foreclosures. This right of redemption exists *after* the foreclosure sale, distinct from the equitable right of redemption which exists *before* the sale (allowing the borrower to stop foreclosure by paying off the loan).
Frequently Asked Questions
Do all states have a redemption period after foreclosure?
No. The availability and length of a statutory redemption period vary greatly by state. Many states that primarily use non-judicial foreclosure (with deeds of trust) do not offer a post-sale redemption period, or offer a very limited one.
Who can exercise the right of redemption?
Primarily the foreclosed homeowner (mortgagor). In some states, junior lienholders whose liens were wiped out by the foreclosure sale may also have a right to redeem the property.
What amount must be paid to redeem the property?
Typically, the redeeming party must pay the price the property sold for at the foreclosure auction, plus any interest that has accrued since the sale, and potentially other costs incurred by the purchaser, such as property taxes or insurance paid.
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