What is Right of Redemption? Florida Foreclosure Laws

The Right of Redemption allows you to purchase your home back after a foreclosure by paying off the mortgage debt or the person or company who bought the home at auction. Though this isn’t always possible depending on where you live. Find out more about Right of Redemption in Florida!

Right of Redemption in Florida

When you stop making mortgage payments and fall behind several months, the bank may go ahead and begin the process of foreclosure against you and your property. The bank will begin foreclosure to be able to sell the home and use the profits to repay the amount you owed and any other associated fees and costs. If there is a difference left after using the profits to pay off the debts you will still be responsible for the leftover amount. After losing your home at a foreclosure auction to a new owner or company many people don’t know you may be able to get that property back! If your state permits it foreclosed homeowners are able to redeem their home in what is known as the redemption period. Read on to see how right of redemption in Florida works.

How it Works

All states allow you the borrower to redeem the home before the sale, only select states allow you to redeem your home after the sale. This a “statutory” right as the amount of time available to redeem the home falls solely from state statutes.

Statutory rights of redemption allow the foreclosed homeowner a period a time after their home has been sold to reclaim the property by paying the foreclosure sale price or the full amount owed to the bank plus any other fees and charges. This is beneficial to the borrower as it gives them more allocated time to obtain the necessary funds to reclaim the home. In some states they even allow you to continue to live in the home during this redemption period.

This is to help ensure the price is fair as a higher price closer to the market will help ensure that the borrower won’t be able to redeem the property back. But many times, it actually results in a lower price as the new buyer must wait until the statutory rights have ended before officially owning the property, reducing the amount they are willing to pay.

Differences Between the States

The time varies from state to state on how long the borrower has to redeem their home. Not all states provide a redemption period but generally, when available it varies from thirty days to a year.

Factors that affect the time length include:

  • If the foreclosure is judicial or nonjudicial the redemption period and time may vary.
  • The time period to redeem can be shortened if certain conditions are met.
  • If your loan documents waive the borrowers right to redemption the borrower won't be able to redeem their property.
  • If the lender tries for a deficiency judgment this can cause the redemption rights harder to obtain.
  • Certain loans used to purchase the property can receive greater protection compared to other mortgage loans.

If you are unsure of your state right of redemption laws, you can check your state's laws here. Alternatively, you can always reach out to a foreclosure attorney who can help inform you of the laws in your area.

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How Much Does it Cost?

To redeem a property, back the borrower usually has to pay the amount that new buyer paid for at the foreclosure sale or the total amount owed on the loan. The foreclosed homeowner will also be responsible for any extra expenses, interests and associated fees.

How to Redeem Your Home

Usually, to redeem a property the foreclosed homeowner must give a written notice of redemption either to the party who purchased the home at auction or the party/court who held the foreclosure sale. Then the homeowner much pay the redemption amount talked about above to the correct party.

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Learn Your Options. Preserve Your Credit.

Going through foreclosure is tough and generally, if a homeowner is facing foreclosure the possibility of redeeming their home is slim. In Florida, the right to redemption is not readily available. The borrower can repay all fees before the signing to the new owner, but generally, this is done within a day of the property being sold at auction. Instead of hoping to redeem your home after the sale takes precautions beforehand to avoid or even stop foreclosure. Things such as loan modifications, short sales, or even bankruptcy could be good alternatives to foreclosure.

It is important to reach out and apply for help before the foreclosure sale. Learning your options early and getting ready will help you have the best chance of keeping your home. 407Foreclosure Help has been helping families learn their options and preserve their credit for over 10 years. Contact us today and get professional foreclosure help in Orlando.


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