Learn about the right of redemption.
A "redemption period" is a specific amount of time given to borrowers in foreclosure during which they can pay off the debt to "redeem" their property. Redeeming the home will stop the foreclosure. To redeem, the homeowner has to:
- pay off the total debt, including the principal balance, plus costs and interest, before the sale to stop the foreclosure, or
- reimburse the person or entity that bought the property at the foreclosure sale for the purchase price (or, in some cases, pay off the total amount of the mortgage debt, plus costs and interest) after the foreclosure sale to reclaim the property.
All states allow a borrower to redeem the property before a foreclosure sale. Some states also provide foreclosed borrowers with a redemption period after a foreclosure sale.
Redemption Before the Foreclosure Sale
One way to avoid a foreclosure is by redeeming the property before the foreclosure sale. The pre-sale right to redeem is based on an equitable principle that borrowers should be given one last chance to keep their home, even if they've defaulted on mortgage payments.
How Much Does It Cost to Redeem Before a Foreclosure Sale?
To redeem before the sale, you'll have to find out the exact amount needed to satisfy the debt. So, you should request a payoff quote, which is also sometimes called a "payoff letter" or "payoff statement," from your loan servicer.
Deadline to Redeem Before a Foreclosure Sale
You may redeem the property at any time between the acceleration of the underlying debt and the foreclosure sale.
How Common Is Redeeming Before a Foreclosure Sale?
In practice, borrowers don't often redeem before a foreclosure sale. People who have access to enough funds to redeem the property before the sale usually don't fall behind in payments in the first place. Or, if they fall behind in payments, they'll typically use their available money to reinstate or keep making the payments until their finances improve.
Statutory Right of Redemption: Getting Your Home Back After a Foreclosure Sale
Some states have passed laws that offer foreclosed borrowers an additional amount of time to redeem the property following a foreclosure sale. This right to redeem after the sale—called a "statutory right of redemption"—arises solely from state statutes. To find out if your state provides a post-sale redemption period, see our Key Aspects of State Foreclosure Law: 50-State Chart.
Sometimes, state law gives the foreclosed borrowers the right to live in the home during the redemption period. To learn whether your state provides a post-sale right of redemption and whether you can remain in your property during this time, consult with a local foreclosure attorney.
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