What is the right to property redemption?

The right to property redemption is a basic concept in foreclosure law. It is not available under all foreclosure situations. You must consult state law and your real estate contracts to understand whether the right of redemption applies in your case.

Right to Redemption

A person whose property is foreclosed upon may have the right to retake the property under right of redemption laws. There is generally a time limit for redemption and the defaulter must generally pay the full balance due on their property loan. The right to redeem is more guaranteed prior to the sale of the property to a new owner. Once property is sold in a foreclosure sale, the right to redeem will be limited to a specified period of time (within 180 days after the sale under federal law) and full price must usually be paid along with interest.

The redemption period can be shorter or longer depending on the state of the property (whether it is just in default or sale has occurred). The right does not exist in all cases, so be sure you understand the terms of your property documents.

Getting Legal Help

An experienced real estate attorney can advise you of your options and whether you have a right to property redemption in your case. Real estate law is state specific and complicated. Sitting down with an attorney to have your rights explained can help you take positive action in your dire circumstances.