Colli Real Estate

What are their rights of redemption in foreclosure?

Redemption rights in foreclosure actually only come after the owner of the property is lost during a foreclosure sale or action. Once the house was lost, some states allow the owner the right to "recover" from his home for varying periods.

Due to the power, banks have to exclude some states have decided that owners should also have the right to reclaim their house if their personal performance within a given period. The landlord will ask the court for a hearing to get your house back and see "proof of funds", which is able to buy your house for what is due plus all costs associated with foreclosure.

Proof of funds can be cash in the bank or a pre-approved letter from another lender willing to finance your home purchase. The new lender will not have to a bank, but money can be a "tough" lender who will charge the owner a much higher rate of interest and closure of the points and make the most often one-year loan. These hard money lenders are called predatory lenders in the industry because they are looking at the amount of loans that easily the case may be delivered if the goods are seized and sold at auction.

The owner who lives in one of the states that have long redemption period, can request the local donor unit or real estate investors to exercise their right to redeem if the home equity that can be recovered by setting the property and sell on the retail market. This is called fair competition and are common in real estate. Equity Agreements stipulate who gets how much of the proceeds from the sale, Who pays the costs and what will be dong the work. Remember, if it is not written into the agreement, it will not happen. If you have questions, ask a lawyer before signing anything.

These are the states that have no redemption period: Arizona, Connecticut, Delaware, Hawaii, Illinois, Iowa, Louisiana, Mississippi, Montana, New Hampshire, New York, Oklahoma, Pennsylvania, South Carolina and Texas. Although these states do not have redemption privileges, you may take legal action against the deficiencies in the bank, claiming irregularities in procedure and mortgages.

States that have one year redemptive rights include: Alabama, Idaho (6 months or 12), Kansas, Kentucky, Maine, North Dakota (6 or 12 months) and Wisconsin (possibly 12 months).

Other states vary greatly because of provisions specific to the mortgage or deed of trust, but contracts ranging from 10 days to 240 days. It is imperative that you consult with someone who is familiar with their laws of Local foreclosure because they vary greatly from state to state, and the sale or auction practices vary from county to county.

About the Author

Dave Dinkel is the author of “32 Ways to Quickly Stop Foreclosure” and has helped thousands of foreclosure victims for nearly 33 years. If you are facing foreclosure, visit StopMyForeclosureMess.com for guaranteed solutions.

8/21/09: White House Press Briefing

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