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