The Right of Redemption

Find out whether your state allows homeowners to redeem their mortgages and buy back their homes after foreclosure.

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The right of redemption is the right of a homeowner in foreclosure to “redeem” the mortgage and keep the house by paying a certain sum of money within a certain period of time. Depending on the laws of their state, homeowners in foreclosure may have two separate rights of redemption: a pre-foreclosure equitable right of redemption and a post-foreclosure statutory right of redemption.

The Equitable Right of Redemption

All homeowners, no matter what state they reside in, have the right to redeem their mortgages and save their homes from foreclosure by paying off the entire mortgage balance, plus fees and costs, prior to the foreclosure sale. Although most homeowners in foreclosure will find it difficult to come up with all the cash required to redeem in a lump sum, mortgages may also be redeemed by refinancing the mortgage debt or selling the home to a purchaser.

The Statutory Right of Redemption

About half of all states have laws that give homeowners the right to redeem their mortgages for a period of time after the foreclosure sale, typically by paying the foreclosure sale price, plus interest and other allowable fees, to the foreclosure sale purchaser. If a home sells at a foreclosure auction for a price far below its fair market value, the homeowner may be able to recoup the equity by redeeming the property for the foreclosure sale price, selling the home to a buyer for the fair market value, and keeping the difference.

State Laws Regarding the Right of Redemption

Each state has its own law governing a homeowner’s right of redemption. Find your state in the list below to find out whether you have the right to redeem your mortgage after the foreclosure sale and what restrictions may apply.

STATE

MOST COMMON METHOD OF FORECLOSURE

DO BORROWERS HAVE A STATUTORY RIGHT OF REDEMPTION AFTER FORECLOSURE?

Alabama

Nonjudicial

Yes, within one year after foreclosure sale. Right of redemption extinguished if borrower fails to turn over possession within ten days of buyer’s written demand for possession.

Alaska

Nonjudicial

Not after nonjudicial foreclosure unless the deed of trust specifically provides a right of redemption. If the lender pursues a judicial foreclosure, there is a 12-month redemption period after the sale is confirmed

Arizona

Nonjudicial

Not after nonjudicial foreclosure. Yes, within six months after a judicial foreclosure sale; if the property was abandoned, redemption period is 30 days.

Arkansas

Nonjudicial

Not after nonjudicial foreclosure. Yes, within one year after a judicial foreclosure sale, but not if the mortgage or deed of trust waives the right to redeem.

California

Nonjudicial

Not after nonjudicial foreclosure. Yes, after judicial foreclosure, but not if a deficiency judgment is waived or prohibited. Redemption period is three months after foreclosure sale if foreclosure sale price is equal to or greater than outstanding mortgage debt plus interest and costs; otherwise, redemption period is one year after foreclosure sale.

Colorado

Nonjudicial

No.

Connecticut

Judicial

Not after strict foreclosure, where the court transfers ownership of the foreclosed home directly to the foreclosing lender (strict foreclosure is most commonly used in Connecticut). After a foreclosure by sale, the homeowner can redeem up until the court confirms the sale.

Delaware

Judicial

No.

District of Columbia

Nonjudicial

No.

Florida

Judicial

Yes, until the court clerk files the certificate of foreclosure sale or the date specified in the foreclosure judgment, whichever date is later.

Georgia

Nonjudicial

No.

Hawaii

Nonjudicial

No.

Idaho

Nonjudicial

No.

Illinois

Judicial

Yes, within seven months after the foreclosure complaint or three months after final foreclosure judgment, whichever date is later, by paying amount of outstanding mortgage debt plus interest and costs (“Redemption Price”). If fair market value of property at time of foreclosure judgment is less than 90% of Redemption Price and lender waives right to deficiency judgment, borrower may redeem within 90 days after the foreclosure complaint or 30 days after the foreclosure judgment, whichever is later, by paying the Redemption Price. If foreclosure sale purchaser was foreclosing lender and foreclosure sale price is less than Redemption Price, borrower may redeem within 30 days after confirmation of foreclosure sale by paying foreclosure sale price plus interest and costs.

Indiana

Judicial

Yes, after foreclosure judgment but before foreclosure sale by paying amount of judgment plus costs and interest. Not after foreclosure sale.

Iowa

Judicial

Yes, within one year after judicial foreclosure sale. Not after alternative nonjudicial foreclosure.

Kansas

Judicial

Yes, within 12 months after foreclosure sale; court may shorten redemption period if property is abandoned. If less than one-third of mortgage was repaid, redemption period is three months; redemption period may be extended if borrower loses primary source of income after foreclosure sale. If outstanding mortgage debt is less than one-third of property’s fair market value, redemption period is twelve months.

Kentucky

Judicial

Yes, within one year after foreclosure sale only if the foreclosure sale price is less than two-thirds of the property’s fair market value.

Louisiana

Judicial

No.

Maine

Judicial

Yes, within 90 days after foreclosure judgment if mortgage was executed on or after October 1, 1975 and within a year if mortgage was executed before October 1, 1975. To redeem, borrower must pay amount of foreclosure judgment plus interest and costs.

Maryland

Nonjudicial

No.

Massachusetts

Nonjudicial

Not after nonjudicial foreclosure. Yes, within three years after judicial foreclosure sale. If foreclosing lender gets deficiency judgment, borrower may bring suit for redemption within one year of deficiency judgment.

Michigan

Nonjudicial

Yes. For residential properties of four units or less, redemption period varies as follows: six months if mortgage executed on or after January 1, 1965 and outstanding mortgage debt is more than two-thirds of original mortgage debt; three months if property is abandoned and outstanding mortgage debt is less than or equal to two-thirds of original mortgage debt; one month if property is abandoned and outstanding mortgage debt is more than two-thirds of original mortgage debt; one year for all other residential properties of four units or less.

Minnesota

Nonjudicial

Yes, within six months after foreclosure sale. Redemption period for certain residential properties is twelve months (for example, if mortgage was executed before July 1, 1967; outstanding mortgage debt is less than two-thirds of original mortgage debt; mortgage was executed prior to July 1, 1987 and property is more than ten acres; or mortgage is reverse mortgage).

Mississippi

Nonjudicial

No.

Missouri

Nonjudicial

Yes, within one year after foreclosure sale only if foreclosing lender is purchaser at such sale. Borrower must give written notice of intent to redeem at the sale or within ten days before the sale. Borrower must post a redemption bond within 20 days of the sale; bond is forfeit if borrower fails to pay outstanding mortgage debt, plus interest, taxes, and costs, within one-year redemption period.

Montana

Nonjudicial

Not after nonjudicial foreclosure. Yes, within one year after judicial foreclosure sale.

Nebraska

Nonjudicial

No.

Nevada

Nonjudicial

No.

New Hampshire

Nonjudicial

No.

New Jersey

Judicial

Yes, if foreclosing lender gets deficiency judgment; redemption period is six months after deficiency judgment. To redeem, borrower must pay amount of foreclosure judgment plus interest and costs.

New Mexico

Nonjudicial

Yes. For judicial foreclosures, borrower may redeem after foreclosure judgment but before foreclosure sale by paying amount of judgment plus costs or within nine months after foreclosure sale by paying foreclosure sale price price plus taxes, costs, and interest. For nonjudicial foreclosures, borrower may redeem within nine months after foreclosure sale by paying foreclosure sale price plus taxes, costs, and interest.

New York

Judicial

No.

North Carolina

Nonjudicial

Yes, within ten days after foreclosure sale by paying outstanding mortgage debt plus costs.

North Dakota

Judicial

Yes, within 60 days after foreclosure sale.

Ohio

Judicial

Yes, until court confirmation of foreclosure sale by paying amount of foreclosure judgment plus costs.

Oklahoma

Nonjudicial

Yes, until court confirmation of foreclosure sale.

Oregon

Nonjudicial

No.

Pennsylvania

Judicial

No.

Rhode Island

Nonjudicial

Yes, within three years after foreclosure sale by paying outstanding mortgage debt plus costs and interest.

South Carolina

Judicial

No.

South Dakota

Nonjudicial

Yes, only if mortgage contains language that the 180-Day Redemption Mortgage Act governs. Redemption period is 180 days after foreclosure sale; if property is abandoned, redemption period is 60 days.

Tennessee

Nonjudicial

Yes, within two years after foreclosure sale. Right of redemption may be waived in mortgage or deed of trust.

Texas

Nonjudicial

No.

Utah

Nonjudicial

Not after nonjudicial foreclosure. Yes, after judicial foreclosure. Redemption period set by court.

Vermont

Judicial

Yes, within six months after court’s decree of strict foreclosure, where the court transfers ownership of the foreclosed home directly to the foreclosing lender (strict foreclosure is most commonly used in Vermont), unless the court orders a shorter redemption period. If a foreclosure sale is ordered by the court, borrower may redeem until foreclosure sale by paying outstanding mortgage debt plus costs.

Virginia

Nonjudicial

No.

Washington

Nonjudicial

Not after nonjudicial foreclosure. Yes, within eight months after judicial foreclosure sale if foreclosing lender waives right to deficiency judgment; if foreclosing lender fails to waive right to deficiency judgment, redemption period is one year.

West Virginia

Nonjudicial

No.

Wisconsin

Judicial

Yes, after foreclosure judgment but before foreclosure sale by paying amount of foreclosure judgment plus interest.

Wyoming

Nonjudicial

Yes, within three months after foreclosure sale.

 

by: , J.D.

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