The foreclosure redemption period may offer a lifeline to some distressed homeowners, by allowing them a little more time in their home. A redemption period in foreclosure is a span of time when the lender will allow the homeowner to remain in the house before eviction. Foreclosure proceedings will not continue during this time, so it may allow homeowners a little breathing room while they figure out the next step.

Foreclosure Redemption Period by State

It’s important to research the foreclosure redemption period by state to determine if it is offered and for how long. Not every state has a foreclosure redemption law, and even among those that do the time period varies widely. The timing of the redemption period can also vary, with some states putting it before the public auction but most offering it after the sale. It’s important to know exactly what state foreclosure laws apply to your situation.

Benefits of Foreclosure Redemption Period

The benefits of a foreclosure redemption period are twofold. First, this time can be used to try to stop a foreclosure from proceeding any further. Homeowners have some options at this point, like finding a buyer before the public sale. Other options include acquiring the money to bring the loan back to being current or approaching the lender about modifying the terms of the loan. Before giving up on keeping your home, be sure to research all your options to stop a foreclosure.

The other way to use the redemption period, particularly if it falls after the public auction, is to use the time to make plans to move on. This time can be used to reassess your finances, save money for a rental deposit or pay off some other debts. You are within your legal rights to remain in the home for the specified redemption period, so use the time well. Unfortunately, a point will come when the home is no longer yours and you may face eviction. You want to be in a position to move on that is the least painful for you and your family.