What Is Redemption After Foreclosure?

In some states you can redeem your home after a foreclosure in order to get it back.

Depending on your state’s laws, you might be able to buy back (or “redeem”) your home even after you lose it in foreclosure. Read on to learn more about what it means to redeem a home, how the right of redemption after foreclosure works, and how you can find out if there is a redemption period following a foreclosure in your state.

What it Means to “Redeem” a Home

In a foreclosure, "redeeming" the home means either of the following things:

  • paying off the total amount you owe (including the principal balance, along with fees, costs, and interest)before the sale in order to stop the foreclosure, or
  • paying the amount that the purchaser who bought the home at the foreclosure sale paid (plus costs and interest) after the foreclosure sale in order to buy back the home.

While all states permit a homeowner to redeem the home prior to the foreclosure sale, only certain states give foreclosed homeowners a period of time (called a redemption period) after the foreclosure to reclaim the home.

Redeeming the Home After Foreclosure

In some states, foreclosed homeowners have a “statutory right of redemption” after the foreclosure takes place. Under a statutory right of redemption, a foreclosed homeowner may repurchase the home from the person or entity that bought it at the foreclosure sale. (This is called a “statutory” right because the right comes from the state’s statutes, which are the state laws.)

The redemption period gives foreclosed homeowners some extra time to find funding to regain title to the home and, in certain states, extra time to live in the home before they can be evicted.

Right of Redemption after Judicial and Nonjudicial Foreclosures

In some states, foreclosures are always judicial, which means they go through the court system. In others, the foreclosure process is typically nonjudicial (out of court), although these states permit judicial foreclosures as well. (To find out what the most common type of foreclosure procedure is in your state, go to our State Foreclosure Laws area and click on your state.)

Right of redemption in judicial foreclosure states. States that have a judicial process often give homeowners the right of redemption after foreclosure. Even if state law doesn’t provide an actual redemption period after the sale, some states allow a very limited amount of time for the homeowner to redeem up until certain post-sale formalities are completed. (For example, the homeowner may be able to redeem up until the court confirms the foreclosure sale.)

Right of redemption in nonjudicial states. Except for a few states, there is generally no redemption period after a nonjudicial foreclosure. States that allow nonjudicial foreclosures sometimes have more than one law for redemption periods -- one that applies to nonjudicial foreclosures and another law that applies to judicial foreclosures. In general, these states tend to provide a redemption period following a judicial foreclosure, but not after a nonjudicial one.

Redemption Period Differs From State to State

The redemption period after a foreclosure, if there is one, varies from state to state, ranging from 30 days in some states to several years in others. (To find out the redemption period after a foreclosure in your state, see our state chart.)

Also, certain factors may change the length of the redemption period. For example:

  • The homeowner may be entitled to more extensive redemption rights if the foreclosing party seeks a deficiency judgment. (Learn more about the foreclosing party’s right to a deficiency in our article on deficiency judgments.)
  • The mortgage documents may waive the borrower's right to redeem.
  • The redemption period may be shortened under some conditions (for example, if the homeowner abandons the home).
  • The homeowner may get more extensive redemption rights if the foreclosing party (rather than a third party) purchases the home at the foreclosure sale.
  • The homeowner may get more time to redeem if he or she has paid off a certain portion of the underlying debt.
  • The homeowner may get more extensive redemption rights if the mortgage loan was used to purchase the home. (To get details about factors that affect the redemption period where you live, see our State Foreclosure Laws area and click on your state.)

How to Redeem After a Foreclosure

To redeem the home after the foreclosure, the foreclosed homeowner must meet all deadlines and follow all state-specific procedures very carefully. The requirements vary quite a bit from state to state, though generally the homeowner must:

  • give notice to the purchaser
  • give notice to the court (or the party who made the sale) of the homeowner's intention to redeem a certain number of days before actually paying the redemption amount, and
  • pay the redemption amount to the court or to the purchaser who bought the home at the foreclosure sale.

Redemption requirements are typically complicated and it is recommended that you seek the assistance of an attorney in your state to help you if you want to redeem your home after a foreclosure.

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