I lost my job a few months ago and stopped making my mortgage payments. Recently, I got a new job, which pays well, but my house is already in foreclosure. Is it possible for me to get the house back if the foreclosure goes through? I live in Nebraska.
No, you won’t be able to get the home back following the foreclosure. Some states allow foreclosed homeowners to repurchase or “redeem” their home after the foreclosure is completed through what is called the “statutory right of redemption,” but Nebraska is not one of them.
You do, however, get a short period of time (usually about 30 days) that you can redeem the home between the sale date and the date the court confirms the sale, but only if your foreclosure is judicial. However, most Nebraska foreclosures are nonjudicial, and with nonjudicial foreclosures you're out of luck after the sale takes place.
No Redemption After a Nonjudicial Foreclosure Sale
In Nebraska, most foreclosures are nonjudicial (where the foreclosure takes place without court supervision). You can't redeem after a nonjudicial foreclosure. The purchaser at the foreclosure sale gets a trustee's deed following the sale and there is no right of redemption (Neb. Rev. Stat. § 76-1010(2)).
When You Can Redeem After a Judicial Foreclosure Sale in Nebraska
Judicial foreclosures (where the lender files a lawsuit in court to foreclose your home) are also possible in Nebraska. There is no right of redemption after a judicial foreclosure is finalized (Neb. Rev. Stat. § 25-1530).
However, after the foreclosure sale, a court must confirm the sale to finalize it. You have up until the court confirms the sale to redeem and keep the house. After that you won’t get another opportunity to get your house back. (Confirmation typically takes place sometime around 30 days after the sale.)
How Much It Will Cost to Save Your Home
If the foreclosure was judicial and you want to redeem before the court confirms the sale, how much you have to pay depends on who buys the home at the foreclosure sale.
Lender buys home. If the foreclosing lender purchases the home, you must pay the full amount of the foreclosure judgment, plus interest and costs (Neb. Rev. Stat. § 25-1530(1)).
Someone other than the lender buys the home. If the property was sold to a third-party at the foreclosure sale, you must pay the purchaser 12% interest on the purchase price from the sale date to the date of redemption (Neb. Rev. Stat. § 25-1530(1)).
You Can Redeem Before the Foreclosure Sale
While you can’t redeem your home after the foreclosure is completed in Nebraska, you do get what is called an "equitable right of redemption" before the sale in both nonjudicial and judicial foreclosures. This means you can pay off the unpaid debt prior to the sale and stop the foreclosure (Learn more general information about the equitable right of redemption.)
Other Ways to Save Your Home Before the Foreclosure Sale
Besides paying off the total amount of the unpaid debt before the sale (or redeeming before the sale is confirmed) there are several other options that may be available to you that would allow you to keep the home. However, you must act before the sale. For example, you could:
- catch up on the past-due amounts and reinstate the loan, or
- obtain a mortgage modification, forbearance agreement, or repayment plan.
The sooner you work with your lender in the foreclosure process to come up with an alternative to foreclosure, the better. If you have not already contacted your mortgage servicer or lender, call immediately to find out about different options for keeping your home.
How to Find Nebraska’s Redemption Laws
To find the statutes that discuss your right to redeem the home after a foreclosure in Nebraska, go to Chapter 76 and Chapter 25 of the Nebraska Revised Statutes. To learn more about foreclosure laws and procedures in Nebraska, visit Nolo’s Nebraska Foreclosure Law Center.