What Is Right of Redemption?
The right of redemption allows a homeowner to reclaim their property after a foreclosure sale by paying the full amount owed — including the sale price, interest, and costs — within a state-set window. Two forms exist: equitable redemption (before the sale, all states) and statutory redemption (after the sale, some states, periods that run from days to years). Check your state's page for whether it applies and what the deadline is.
Key Facts
- Many states give no right to buy the home back after the sale, and others give one only after some kinds of sale or in some cases; where a state does, the period runs from days to years, so the rule for your state and your kind of foreclosure matters more than any national figure
- Equitable redemption — the right to cure the default and stop foreclosure before the sale — exists in every state, though the deadline varies from days before the sale to months in advance
- During a statutory redemption period, the former homeowner may retain possession of the property in some states (Michigan, Minnesota), while in others the buyer takes immediate possession
- To redeem, the homeowner must typically pay the full foreclosure sale price plus interest (often 6-10% annually), recording fees, and any taxes or insurance the buyer has paid since the sale
- Many states that allow redemption add conditions, such as the size of the default when the sale was ordered, the type of property, or whether the lender waived a claim for the leftover balance, so one state can have more than one period
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What Are the Two Types of Redemption?
Redemption rights come in two distinct forms, and understanding the difference is critical for homeowners facing foreclosure:
- Equitable redemption exists in every state. It is the right to stop the foreclosure by paying all past-due amounts, fees, and costs before the foreclosure sale occurs. Once you cure the default, the lender must reinstate your loan. This right ends at the moment of the foreclosure sale.
- Statutory redemption exists in some states. It allows the former homeowner to reclaim the property after the foreclosure sale by paying the full purchase price (not just the arrears) plus statutory interest and costs. This is a more powerful right — but also more expensive to exercise, because you must pay the entire sale amount rather than just the missed payments.
How Long Is the Redemption Period?
It depends on the state, and often on the kind of sale, the property, or how much was owed. Some states give no buyback right after the sale. Others give one only after a court-supervised sale, or only in some cases. Where a state does give one, the period runs from days to years, and conditions can shorten or lengthen it. Check the rule for your state and your kind of foreclosure before you rely on any single number.
For every state's buyback rule and leftover-balance rule, read from the state law files, see the state-by-state table. Each state foreclosure guide and state law page gives the full rule with its citation.
Can You Live in the Home During Redemption?
This varies by state and has significant practical implications:
- Possession during redemption: Michigan and Minnesota allow the former homeowner to remain in the property during the statutory redemption period. This provides time to arrange financing or negotiate a solution.
- No possession: In most states with statutory redemption, the foreclosure buyer takes possession at the sale, and the former owner exercises redemption from outside the property.
Where possession is allowed, the former homeowner must maintain the property and may be required to pay a reasonable rent or use-and-occupation charge to the buyer.
How Does Redemption Interact With Other Options?
Redemption is a last resort, not a first option. Before the sale, homeowners should explore loss mitigation options like forbearance, loan modification, or repayment plans — all of which are cheaper than redemption because they only require catching up on missed payments rather than paying the full sale price. Bankruptcy can also pause the redemption clock through the automatic stay, giving the homeowner more time to arrange funds. The right of redemption serves as a final safety net when all other options have been exhausted.
Frequently Asked Questions
Can I get my house back after a foreclosure sale?
In some states, yes, but you must pay the full foreclosure sale price plus interest and costs within the state's redemption period, and many states give no right to redeem after the sale at all. Where one exists, the period runs from days to years and can depend on the kind of sale. Where there is none, the sale is final once completed.
What is the difference between equitable and statutory redemption?
Equitable redemption lets you stop foreclosure before the sale by paying all missed payments plus fees (available in all states). Statutory redemption lets you reclaim your home after the sale by paying the full purchase price — a much higher amount — within a state-set deadline (available in some states, with conditions).
Can I stay in my home during the redemption period?
In some states like Michigan and Minnesota, yes — you can remain in possession during the statutory redemption period. In most other states, the foreclosure buyer takes possession at the sale and you would need to exercise redemption from outside the property.
How much does it cost to redeem a foreclosed property?
To exercise statutory redemption, you must typically pay the full foreclosure sale price plus statutory interest (often 6-10% annually), recording fees, property taxes the buyer has paid, insurance premiums, and any necessary maintenance costs the buyer incurred.
Does filing bankruptcy extend the redemption period?
Filing bankruptcy triggers an automatic stay that can pause the redemption clock temporarily. However, the foreclosure buyer can request the bankruptcy court to lift the stay. The interaction between bankruptcy and redemption timelines varies by jurisdiction and case-specific factors.