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You have surpassed your redemption period for home foreclosure are there any legal means to retain the property?
Wiki User
∙ 15y ago
Most states that have a redemption period after a foreclosure auction give homeowners extra time to stay in a property after the sale. The house is foreclosed on, then sold at a public auction, and then the homeowners have time afterwards in order to save the house, pay off the redemption amount, get a new loan, sell, or just save up money and move on. The eviction will not start until after the redemption has expired.
A small number of states (Illinois, for one) have a redemption period that lasts before the sheriff sale of the house. Once the foreclosure lawsuit has been completed and the bank granted a judgment, the homeowners will be able to use a period of time between the judgment and the sheriff sale to find a solution. This may be just a few weeks in some states to half a year in others, but if the owners are unable to pay back the loan, the house will be auctioned off.
Usually, when properties sell at the county sheriff sale, it is the foreclosing bank or a related bank that puts in the winning bid amount. From that point on, it will be this new owner that the homeowners would have to deal with in order to get the house back after the auction. In a very small number of cases, a third party individual or company will purchase the house, but the manner in dealing with this type of owner is not much different than if the bank buys the property back.
When the redemption period has expired on a property, the original owners have very few options left to save the house, and very little time in which to do it. Banks, while they may be willing to push back a sheriff sale or give homeowners an extra month to come up with missed payments, will not usually be open to extending the redemption period. Typically, the lender will begin with eviction process right away as soon as the homeowners have run out of time.
This should not come as much of a surprise to homeowners, however. After all, mortgage companies may have to wait up to a year for a redemption period to expire, which is time they would not have had to wait in other states to take the house back. When the lender can finally begin to pursue the eviction, they usually do so aggressively, understanding that if the foreclosure victims could not work out a solution in the preceding months, it is unlikely they will be able to do so with even more time after the redemption.
So, the main option that is left for homeowners is usually to purchase their property back from the bank. Now that the redemption has ended, the bank is the legal owner of the house and holds title. If the former owners wish to keep the property, they will have to find some way to get it back in their names and have the mortgage company transfer ownership back to them.
For homeowners with a lengthy redemption period who have the financial ability to save money every month, it may be possible to qualify for a mortgage after foreclosure within 6-12 months. A sizable down payment will be required, however, up to 35% of the purchase price. But people who were foreclosed on a year ago may be able to afford to buy back their former home at a substantially reduced price, due to declining property values nationwide.
Otherwise, the most effective way to stay in the property may be to have a friend or family member purchase the house and agree to lease it back to the owners. This investor can buy the house and keep it in his name, and then lease it to the foreclosure victims until their credit has recovered and they have saved up enough to qualify for an outright purchase.
Unfortunately, due to the entire foreclosure process and transfer of the property out of the names of the original owners, most options are unavailable after the redemption period. Banks will not accept forbearance agreements or modify the loan, and simply refinancing a home that is no longer owned by the original family is out of the question. For homeowners who want to save their house after the redemption has expired in their case, there is little to do other than attempt to purchase the property back from the lender.
Wiki User
∙ 15y ago
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Can the prior owners of real property in Florida have a redemption period after the foreclosure sale of property?
No, Florida foreclosure law states that the homeowner has the right to redeem the property anytime BEFORE the day of the sale. After the Certificate of Sale has been issued, there is no right of redemption.
What is a redemption period?
The redemption period is the legal time period you have to redeem something that has been taken from you by operation of some law. For example, if your property is taken by your municipality for nonpayment of property taxes there is a period during which you can redeem the land by paying all your back taxes, interest and costs. In some cases there is a redemption period during which a property taken by foreclosure can be redeemed by paying all sums due including the costs of the foreclosure. Redemption periods may vary by jurisdiction. You need to check in your jurisdiction for the particular type of taking and its redemption period according to the laws in your jurisdiction. See related link for state by state information regarding foreclosure redemption periods.
What is the redemption period for Virginia State?
There is no redemption period for the state of Virginia. http://www.realtytrac.com/foreclosure-laws/Virginia-foreclosure-laws.asp
Who is considered an heir who has rights to redeem a foreclosed property?
If the person who lost the property by foreclosure died within the redemption period their heirs are those persons who would inherit their property in the absence of a will under the state laws of intestacy. You can check the laws in your state at the related question link.If the person who lost the property by foreclosure died within the redemption period their heirs are those persons who would inherit their property in the absence of a will under the state laws of intestacy. You can check the laws in your state at the related question link.If the person who lost the property by foreclosure died within the redemption period their heirs are those persons who would inherit their property in the absence of a will under the state laws of intestacy. You can check the laws in your state at the related question link.If the person who lost the property by foreclosure died within the redemption period their heirs are those persons who would inherit their property in the absence of a will under the state laws of intestacy. You can check the laws in your state at the related question link.
When a property goes through foreclosure can borrower do a deed in lieu prior to the end date of the redemption period?
When a Property goes into Foreclosure and a Sheriff sale date is posted, or if after the Sheriff sale and is during the redemption period a "Deed in Lieu" is always a possibility. The Mortgage lender must agree to accept this. A"Deed in lieu" is the process in which an owner would be surrendering the title to the lender. Again the Mortgage/lender must agree to this act.
What is an equitable right of redemption?
In a mortgage foreclosure process, the time between the foreclosure filling date and the auction sale is called the "Equity of Redemption Period". Once the home has been sold, most States grant a time period such as six months for the defaulting owner to repay the debt and fees. This is referred to as the "Statutory Period of Redemption".
What is the difference between preclosure and foreclosure?
Be aware that a pre-foreclosure property is not necessarily for sale. The pre-foreclosure stage is the period between the time in which a Notice of Default (in non-judicial foreclosure) or lis pendens (in judicial foreclosure) has been issued to the homeowner and after the property is sold at a foreclosure auction.
How long is the redemption period for a foreclosed house in Minnesota?
You can find information about Minnesota foreclosure laws at the link below.
What is the Redemption period for sheriff's deed in Michigan?
Redemption of a Sheriff's Deed after foreclosure is 6 Months from the date of the Sheriff Sale unless: 1) The property is located on 1 acre of land or more 2) The amount owed when the Sheriff Sale takes place is less than 66 & 2/3 percent of the original balance (as in it was payed down a LOT before things got bad and the foreclosure train showed up) If either of the above are true then the redemption period is one year. Also, if the Sheriff's Deed is not recorded within 20 days of the actual sale date, then the 6 months redemption period begins from the date the Sheriff's deed is recorded.
In what amount of time can an owner of a foreclosed property that has sold in California reclaim their property?
There is a one year right of redemption in California but only under certain circumstances. The foreclosed party can reclaim the property up to one year after the sale by payment in full of the remaining loan balance plus costs UNLESS the original lender made a full price bid. In that case the period is shortened to 90 days. There is no statutory right of redemption if a deficiency judgment was waived or prohibited at the time of the foreclosure. You can read more about foreclosure in California at the link below.
Why is redemption important?
When you default on a home loan and your lender had delivered you the Notice of Default, you have the option of trying to save your home through loan modification. Your lender may also have other options you can pursue if you contact them immediately when you begin to slip on your finances. However, very few homeowners know about all their legal options that may be available to them. One very important option to be aware of is that some states provide for a redemption period after foreclosure.What is a Redemption Period After Foreclosure? The redemption period is a state regulated statute that allows a homeowner the opportunity to live in the home at the time of foreclosure without being evicted. More importantly, in states with a redemption statute, the homeowner is also given the first opportunity to regain ownership of the property by paying for the home at the foreclosed price. The length of time allowed for the redemption period is always dependent upon which state the property being foreclosed on is located in. Since this is a state regulation, some states may not even offer this option, some states may offer a period of 60 to 90 days, and other states may offer no more than several days to a week. It's the homeowner's responsibility to be knowledgeable as to whether or not this right is extended and for how long.Why Does The Redemption Period Matter?There are obvious benefits to the property redemption program, but there are also some less obvious benefits as well: When the time comes that the foreclosure is inevitable, and there is no way the homeowner can pay the money needed in order to retain ownership of the property, the redemption period provides time for the homeowner to consider other options he has regarding his future living situation without having to make an immediate adjustment from the home to a smaller dwelling.Another benefit is the fact that the redemption period can allow the homeowner much needed time to take care of bills that are piling up, or take care of issues with other creditors and to begin to take back control of other financial issues. This can be extremely helpful to a homeowner who has multiple financial problems.The reason the redemption period is so important is because, when utilized properly, the homeowner can either find the means necessary to retain ownership of his or her property without ever having to leave it, or the time can be used to straighten out any other financial matters that may be weighing on the homeowner.Talk to a Foreclosure Defense Attorney To find out if your state offers a redemption period and to take advantage of this legal option, you should get the help of a lawyer who specializes in foreclosure. Your lawyer can provide you with an overview of all of your options during foreclosure and can help make sure your rights are protected.
Are deficiency judgments allowed in Minnesota after foreclosure?
Yes, deficiency judgments are allowed in Minnesota after foreclosure. Lenders can pursue borrowers for the remaining loan balance if the proceeds from the foreclosure sale are not sufficient to cover the debt owed. However, there are limitations on when and how deficiency judgments can be pursued.
