Right of Redemption

foreclosure

The right of redemption is the right of a property owner to redeem his or her real estate from foreclosure by paying the lender the outstanding principal and interest due, plus the lender’s costs in foreclosure, or to redeem foreclosed real property from whoever purchased it at the foreclosure sale.

There are two key reasons why a foreclosure investor needs to be familiar with the right of redemption. One is that you need to know when you buy a property at auction whether or not the owner can get the property back if he somehow comes up with sufficient funds (typically the outstanding balance, accrued interest, late fees and costs). The second is that you may be able to buy the redemption rights whether or not you actually buy the property.

It would always be prudent to check when the redemption period really ends ……

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