What Is Right of Redemption?
The right of redemption allows a homeowner to reclaim their property after a foreclosure sale by paying the full amount owed — including the sale price, interest, and costs — within a state-set window. Two forms exist: equitable redemption (before the sale, all states) and statutory redemption (after the sale, roughly 20 states, periods from 10 days to 2 years).
Key Facts
- Approximately 20 states provide a statutory right of redemption after a foreclosure sale, with periods ranging from 10 days (Maine) to 2 years (Alabama's 12-month statutory period among the longest)
- Equitable redemption — the right to cure the default and stop foreclosure before the sale — exists in every state, though the deadline varies from days before the sale to months in advance
- During a statutory redemption period, the former homeowner may retain possession of the property in some states (Michigan, Minnesota), while in others the buyer takes immediate possession
- To redeem, the homeowner must typically pay the full foreclosure sale price plus interest (often 6-10% annually), recording fees, and any taxes or insurance the buyer has paid since the sale
- Kansas provides one of the longest redemption periods at 12 months from confirmation of sale, and Iowa's regular track allows 12 months — but the lender can shorten it by waiving the deficiency
Live Data
What Are the Two Types of Redemption?
Redemption rights come in two distinct forms, and understanding the difference is critical for homeowners facing foreclosure:
- Equitable redemption exists in every state. It is the right to stop the foreclosure by paying all past-due amounts, fees, and costs before the foreclosure sale occurs. Once you cure the default, the lender must reinstate your loan. This right ends at the moment of the foreclosure sale.
- Statutory redemption exists in roughly 20 states. It allows the former homeowner to reclaim the property after the foreclosure sale by paying the full purchase price (not just the arrears) plus statutory interest and costs. This is a more powerful right — but also more expensive to exercise, because you must pay the entire sale amount rather than just the missed payments.
How Long Is the Redemption Period?
Statutory redemption periods vary dramatically by state:
- Short periods (under 3 months): Maine (90 days), Delaware (none — no statutory redemption), Georgia (none for non-judicial)
- Medium periods (3-6 months): Michigan (6 months), Minnesota (6 months, 12 for agricultural), North Dakota (60 days non-judicial), Vermont (6 months)
- Long periods (6-12+ months): Kansas (12 months), Iowa (12 months regular track), Alabama (12 months), Oklahoma (6 months), Wyoming (3 months judicial), New Mexico (9 months)
Some states adjust the period based on circumstances. Iowa allows the lender to shorten the redemption period to zero by waiving the right to a deficiency judgment. Michigan reduces the period from 6 months to 1 month for abandoned properties.
Can You Live in the Home During Redemption?
This varies by state and has significant practical implications:
- Possession during redemption: Michigan and Minnesota allow the former homeowner to remain in the property during the statutory redemption period. This provides time to arrange financing or negotiate a solution.
- No possession: In most states with statutory redemption, the foreclosure buyer takes possession at the sale, and the former owner exercises redemption from outside the property.
Where possession is allowed, the former homeowner must maintain the property and may be required to pay a reasonable rent or use-and-occupation charge to the buyer.
How Does Redemption Interact With Other Options?
Redemption is a last resort, not a first option. Before the sale, homeowners should explore loss mitigation options like forbearance, loan modification, or repayment plans — all of which are cheaper than redemption because they only require catching up on missed payments rather than paying the full sale price. Bankruptcy can also pause the redemption clock through the automatic stay, giving the homeowner more time to arrange funds. The right of redemption serves as a final safety net when all other options have been exhausted.
State-by-State Variations
Statutory redemption rights are among the most variable areas of state foreclosure law, with roughly half of states providing no post-sale redemption at all.
| State | Key Difference |
|---|---|
| Alabama | One-year statutory redemption period (Ala. Code § 6-5-248). Former owner or any interested party may redeem by paying the purchase price plus 6% interest and costs. One of the longest periods in the country. |
| Michigan | 6-month redemption period with right to remain in possession. Reduced to 1 month for abandoned properties. Borrower pays sale price plus interest and costs. (MCL 600.3240) |
| Kansas | 12-month statutory redemption from confirmation of sale (K.S.A. 60-2414). Among the longest in the nation. Can be shortened to 3 months if property is abandoned. |
| Iowa | 12-month redemption on regular track. Lender can reduce to zero by waiving deficiency judgment via Foreclosure Without Redemption (§ 654.28). Unique dual-track system. |
| California | No statutory redemption for non-judicial trustee's sales (the dominant method). Judicial foreclosures have a 3-month or 1-year period depending on whether deficiency was waived. |
Frequently Asked Questions
Can I get my house back after a foreclosure sale?
In roughly 20 states with statutory redemption, yes — but you must pay the full foreclosure sale price plus interest and costs within the state's redemption period. This ranges from 10 days to 2 years depending on the state. In states without statutory redemption, the sale is final once completed.
What is the difference between equitable and statutory redemption?
Equitable redemption lets you stop foreclosure before the sale by paying all missed payments plus fees (available in all states). Statutory redemption lets you reclaim your home after the sale by paying the full purchase price — a much higher amount — within a state-set deadline (available in about 20 states).
Can I stay in my home during the redemption period?
In some states like Michigan and Minnesota, yes — you can remain in possession during the statutory redemption period. In most other states, the foreclosure buyer takes possession at the sale and you would need to exercise redemption from outside the property.
How much does it cost to redeem a foreclosed property?
To exercise statutory redemption, you must typically pay the full foreclosure sale price plus statutory interest (often 6-10% annually), recording fees, property taxes the buyer has paid, insurance premiums, and any necessary maintenance costs the buyer incurred.
Does filing bankruptcy extend the redemption period?
Filing bankruptcy triggers an automatic stay that can pause the redemption clock temporarily. However, the foreclosure buyer can request the bankruptcy court to lift the stay. The interaction between bankruptcy and redemption timelines varies by jurisdiction and case-specific factors.