Redemption Before and After a Foreclosure Sale
If one is faced with losing their home to foreclosure, there are options available to “redeem” the property before or after the foreclosure sale. The set redemption periods give those named as defendants the opportunity to pay off the debt and buy back the property. Here are the two redemption options available:
Avoiding the Pre-Foreclosure Sale
Florida residents who are in the midst of a foreclosure case are entitled to the Equitable Right of Redemption, which is the liberty to keep their home before the foreclosure sale by paying off the total mortgage debt and associated costs. Our West Palm Beach foreclosure attorneys suggest inquiring about a payoff statement from the mortgage servicer. This document will give clear details as to the exact amount of money that will need to be paid in order to keep the foreclosure sale from proceeding. These details can include the back and current payments due, late fees, property inspections, and other fees acquired for the protection of the lender’s interest in the property. After producing the funds to cover these costs, the debtor can officially redeem the property between the acceleration of the underlying promissory note and the foreclosure sale timeline.
While seemingly uncomplicated, it can be extremely difficult to navigate the necessary legal documents as well as having to conform to the strict time constraints when paying back these debts. If unable to satisfy this stipulation, there is the choice to pursue possible alternatives such as loan modifications and post-foreclosure sale redemption with the help of experienced foreclosure defense attorneys.
Redeeming Property Post-Foreclosure Sale
Thanks to the Statutory Right of Redemption (depending on the state), after the foreclosure sale one can still redeem their home and reimburse the person or entity that bought the property for the sale price—as long as it is done before the certificate is filed. The Statutory Right of Redemption gives the borrower a set period of time after a foreclosure sale to buy back the property. The costs are comprised of the foreclosure sale price and may also include missed mortgage payments plus any accumulated interest.
Certain factors vary from state to state, including judicial or nonjudicial foreclosures as well as the length of the redemption period. In Florida, the redemption period after the foreclosure sale is a brief 10 days. With the help of an experienced foreclosure attorney, those choosing to pursue a pre-foreclosure redemption can take advantage of this window of opportunity and potentially reclaim the house.
The statutory redemption period is held in place to ensure that the foreclosed house is sold at a fair price to avoid a former owner buying back his property for a significantly lower price. Nonetheless, foreclosure defense attorneys are well versed and have experience dealing with proceeding efficiently and successfully.
Talk to an Attorney
Navigating the pre and post redemption periods throughout the foreclosure process can be intricate and frustrating without expert help and guidance. If you are at risk of losing a home to foreclosure, consult with our experienced South Florida foreclosure defense attorneys to explore possible options available for redeeming a home. Contact Kelley Kaplan & Eller today to schedule a consultation.