Unfortunately, the majority of homeowners that fall into foreclosure are unaware of all of the rights they are entitled to throughout the foreclosure process. Many people end up not exercising legal rights they are fully entitled to, costing them much more money and anguish than needed. In most cases, the lender is not obligated to inform every homeowner in foreclosure of every one of their options, which leads many people to believe that they simply must do everything the lender requires of them. This, however, is simply not true. One of the most important rights you have is the right of redemption.
What is the Right of Redemption
Depending on the state you live in, there may be a period of time where you are permitted to stop the foreclosure process after it starts by paying the bank, the IRS, or whomever is foreclosing on you. If your state enforces a right of redemption, your lender won't be allowed to demand you pay off the entire mortgage and won't be able to force you to go through with the mortgage sale. In short, it’s a sort of “first dibs” system, giving the homeowner the first opportunity to buy back the property.You'll have to pay the past due payments and your original loan and terms will be reinstated.
Typically, during the right of redemption period, you are legally allowed to stay in your home. This rule is designed to lift the burden on the homeowner of having to juggle moving out of the home and into a new dwelling while trying to deal with the financial issues that caused the foreclosure proceedings to start.
Whether the foreclosure is inevitable or you have found the means to possibly regain ownership of your home, the use of the redemption period can either provide you the time needed to find the funding necessary, or it can allow you the time to take care of other financial obligations without having the added pressure of a new monthly housing payment hanging over your head.
Getting Help
To make sure you fully understand all of your rights during foreclosure, including the right o redemption, it is a good idea for you to get help from an experienced attorney who specializes in foreclosures. Your lawyer can help you to understand all the ways you may stop foreclosure and can hep you evaluate your best course of action.
