What are foreclosure redemption periods?

Whether your state offers judicial foreclosure vs non-judicial foreclosure, you'll want to understand all the rules and vocabulary associated with the foreclosure process. For example, Foreclosure redemption periods are periods of time granted to beleaguered homeowners by various state statutes.  These laws give homeowners additional time to live on the property before the foreclosure or eviction process takes place.  During this redemption period, the bank must stop its foreclosure proceedings.  

While not all states of foreclosure redemption periods, some do offer homeowners lengthy periods of time during which they can try to save their home.  Other states only give homeowners a few days, prior to a sheriff sale.  Others place it after the sale, but before the eviction.   

These redemption periods have two primary advantages: 

• During that time, homeowners can work to try to make last-minute efforts to save their home.  They can do so by trying to renegotiate the terms of their loan, called loan modification, or they can try to refinance their home again.  They can also try to borrow money to get as current as possible on their mortgage, or make other arrangements to save their home.

• In the event that they are unable to save their home, the redemption period can be used to help the homeowner save much needed money to find a new place to live, to start rebuilding their credit, and to simply survive.  These redemption periods can be the first step in a homeowner rebuilding their financial future.

If you are dealing with the foreclosure process, it is a good idea to talk to a lawyer. An experienced attorney can help you to understand any and all rights you may have during the foreclosure so you have the best possible chance of saving your home.