Foreclosures For Sale—How to Redeem Your Property After Foreclosure

Foreclosures for sale

Photo Courtesy of sean dreilinger via Flickr

Have you been foreclosed? Don’t leave your home just yet because there’s still a light of hope at the end of the dark tunnel. After your home has been foreclosed, it will go on sale at an auction. But don’t you know that foreclosures for sale can still be redeemed by its original owner? Well, about half of the US have redemption laws which give foreclosed homeowners limited time to redeem their own property by paying the foreclosure sale. What is more, you can stay on your property during the period of redemption.

How to Redeem Foreclosures for Sale

Redemption laws are promulgated so that foreclosed properties can’t be sold at unreasonable prices. This allows homeowners a good opportunity to purchase their homes. You have to be careful though, the time to redeem is limited—between two months to a year. Here are the steps:

Make sure to fill in the form from the court indicating your intentions to redeem your property. If you don’t fill this form, the court will presume that you are no longer interested in your property.

To strengthen your intent, make sure to provide proof of ownership of the property like a deed. If the deed has been lost, you can usually get a copy from the court.

Make sure you have the money ready to pay the foreclosure including any interest rate to the buyer. Next, you just have to wait for the court to contact you regarding your intent to redeem.

If you are instructed, make sure to prepare a certificate of funds. This is usually given to the court or to a public trustee preferably before the last day of the redemption period.

The foreclosure sale will be annulled after you have paid but if there are any recorded encumbrances, you will still have to pay it.

If you cannot afford to redeem your property, your last card would be to sell your redemption rights to your property buyer. This way, you can still make some money even if you’re not able to redeem your property.

If you will allow a longer period of time before you will redeem your property, remember that the cost to redeem will increase due to interest rates. If the buyer has to pay taxes, you have to pay that too. This means that as much as possible, you must not allow a longer period of time to elapse before buying back foreclosures for sale.

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