Regaining Ownership After Foreclosure: Statutory Redemption
Statutory redemption allows the mortgagor (the homeowner) to regain ownership of the property after foreclosure sale. About one-half the states have statutory redemption laws. Generally, these laws give anywhere from six months to a year for the mortgagor to redeem the mortgage by:
- Payment of the foreclosure sale price, and
- A statutory rate of interest to the sale purchaser.
Junior lien holders also have a right to redeem under statutory redemption laws (in order of their priority) though not until after the period for the mortgagor to redeem runs out. As a rule, the mortgagor can retain possession of their property during this statutory redemption period.
