Redeem

Redeem: To buy back or regain possession of a foreclosed property.

Redeem: To buy back or regain possession of a foreclosed property by paying off the outstanding amount owed, which includes the principal balance, as well as fees, costs, and interest, prior to the sale in order to avoid the foreclosure, or by paying the amount that the buyer at the foreclosure sale paid, as well as costs and interest, after the foreclosure sale to buy back the property.

How to Redeem Your Home After Foreclosure

Nearly half of all states have laws that afford homeowners the right to redeem their mortgages for a period of time after the foreclosure sale. To redeem, homeowners must pay the foreclosure sale price, plus interest and costs, to the foreclosure sale buyer.

In states with judicial foreclosure, homeowners are usually given the right to redeem after foreclosure up until the completion of the sale, which usually involves court confirmation of the foreclosure sale. In states with non-judicial foreclosure, homeowners usually have no right to redeem a foreclosed property.

In Washington, for example, all homeowners are entitled to redeem their foreclosed property.

The law states, “The judgment debtor may redeem the property from the purchaser at any time within eight months after the date of the sale if the sale is pursuant to judgment and decree of foreclosure of any mortgage executed after June 30, 1961, which mortgage declares in its terms that the mortgaged property is not used principally for agricultural or farming purposes, and in which complaint the judgment creditor has expressly waived any right to a deficiency judgment, or otherwise within one year after the date of the sale.

“The person who redeems from the purchaser must pay: The amount of the bid, with interest thereon at the rate provided in the judgment to the time of redemption, together with the amount of any assessment or taxes which the purchaser has paid thereon after purchase, and like interest on such amount from time of payment to time of redemption, together with any sum paid by the purchaser on a prior lien or obligation secured by an interest in the property to the extent the payment was necessary for the protection of the interest of the judgment debtor, and like interest upon every payment made from the date of payment to the time of redemption.”

Some states, however, place restrictions on redemptions. In Minnesota, for example, “If an inspection is unreasonably refused or if damage to the property is imminent or has occurred, the purchaser of the property at the Sheriff Sale may immediately begin eviction proceedings to seek possession and terminate the homeowner’s redemption period.”

Other states have no redemption period after the foreclosure sale. South Carolina, for example, follows the hammer rule, meaning once the hammer falls at the foreclosure auction, the homeowner loses all rights to the property.

Redeem

Redeem: To buy back or regain possession of a foreclosed property.

Redeem: To buy back or regain possession of a foreclosed property by paying off the outstanding amount owed, which includes the principal balance, as well as fees, costs, and interest, prior to the sale in order to avoid the foreclosure, or by paying the amount that the buyer at the foreclosure sale paid, as well as costs and interest, after the foreclosure sale to buy back the property.

How to Redeem Your Home After Foreclosure

Nearly half of all states have laws that afford homeowners the right to redeem their mortgages for a period of time after the foreclosure sale. To redeem, homeowners must pay the foreclosure sale price, plus interest and costs, to the foreclosure sale buyer.

In states with judicial foreclosure, homeowners are usually given the right to redeem after foreclosure up until the completion of the sale, which usually involves court confirmation of the foreclosure sale. In states with non-judicial foreclosure, homeowners usually have no right to redeem a foreclosed property.

In Washington, for example, all homeowners are entitled to redeem their foreclosed property.

The law states, “The judgment debtor may redeem the property from the purchaser at any time within eight months after the date of the sale if the sale is pursuant to judgment and decree of foreclosure of any mortgage executed after June 30, 1961, which mortgage declares in its terms that the mortgaged property is not used principally for agricultural or farming purposes, and in which complaint the judgment creditor has expressly waived any right to a deficiency judgment, or otherwise within one year after the date of the sale.

“The person who redeems from the purchaser must pay: The amount of the bid, with interest thereon at the rate provided in the judgment to the time of redemption, together with the amount of any assessment or taxes which the purchaser has paid thereon after purchase, and like interest on such amount from time of payment to time of redemption, together with any sum paid by the purchaser on a prior lien or obligation secured by an interest in the property to the extent the payment was necessary for the protection of the interest of the judgment debtor, and like interest upon every payment made from the date of payment to the time of redemption.”

Some states, however, place restrictions on redemptions. In Minnesota, for example, “If an inspection is unreasonably refused or if damage to the property is imminent or has occurred, the purchaser of the property at the Sheriff Sale may immediately begin eviction proceedings to seek possession and terminate the homeowner’s redemption period.”

Other states have no redemption period after the foreclosure sale. South Carolina, for example, follows the hammer rule, meaning once the hammer falls at the foreclosure auction, the homeowner loses all rights to the property.

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