Equitable Redemption

Homeowners have the right to redeem their property at any time after default before their home is auctioned at a foreclosure sale. Usually, to redeem the property, the homeowner must pay the mortgage in full, as well as any bank fees resulting from non-payment, including collection fees, court costs and attorney’s fees related to the foreclosure process.

Redeeming Property Before Foreclosure

The foreclosure process can be halted by equitable redemption from the start of the foreclosure process until the foreclosure sale. In order to redeem the property, homeowners must pay the entire mortgage balance to remove the lien against the home.

Redeeming Property After Foreclosure

Some states, allow homeowners to redeem their property after the foreclosure sale. The buyer cannot claim the property until the redemption period ends, therefore, homeowners can buy back their property if they are able to pay their mortgage balance during this period.

According to Alabama real estate attorney Brian M. Cloud, “In every state, borrowers have the equitable right to redeem their home before their property is sold at a foreclosure sale. In order to redeem their home and stop the foreclosure the owner generally must pay off the total amount that they owe on their home, plus additional costs and interest. The equitable right of redemption acts as a second chance for borrowers to save their home from foreclosure after they have fallen behind on their mortgage payments.”

Equitable Redemption

Homeowners have the right to redeem their property at any time after default before their home is auctioned at a foreclosure sale. Usually, to redeem the property, the homeowner must pay the mortgage in full, as well as any bank fees resulting from non-payment, including collection fees, court costs and attorney’s fees related to the foreclosure process.

Redeeming Property Before Foreclosure

The foreclosure process can be halted by equitable redemption from the start of the foreclosure process until the foreclosure sale. In order to redeem the property, homeowners must pay the entire mortgage balance to remove the lien against the home.

Redeeming Property After Foreclosure

Some states, allow homeowners to redeem their property after the foreclosure sale. The buyer cannot claim the property until the redemption period ends, therefore, homeowners can buy back their property if they are able to pay their mortgage balance during this period.

According to Alabama real estate attorney Brian M. Cloud, “In every state, borrowers have the equitable right to redeem their home before their property is sold at a foreclosure sale. In order to redeem their home and stop the foreclosure the owner generally must pay off the total amount that they owe on their home, plus additional costs and interest. The equitable right of redemption acts as a second chance for borrowers to save their home from foreclosure after they have fallen behind on their mortgage payments.”

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