The statutory right of redemption in foreclosure is a state law that gives a former homeowner a set period after the foreclosure sale to buy the property back from whoever purchased it at auction. Roughly half of states offer some version of this right, and the window can run anywhere from 30 days to a full year depending on where the property sits. Because it exists only where a state legislature has created it, the availability, timeline, and cost differ sharply from one state to the next.
Not the Same as the Equitable Right of Redemption
Two “rights of redemption” show up in foreclosure law, and they do different work. The equitable right lets a homeowner stop a foreclosure before the sale by paying off the full mortgage balance plus interest and fees. It is broadly available and it disappears the moment the auction ends.
The statutory right picks up on the other side of that line. It applies after the sale, in states that have enacted it, and it lets the former owner reclaim the property from the auction buyer rather than from the lender. One ends where the other begins; they do not overlap.
How Long You Have to Redeem
State law sets the clock. Some states give six months or a full year. Others allow only 30 to 60 days. In states that rely primarily on nonjudicial foreclosure, there may be no post-sale redemption right at all.
A few things can move the deadline. If a court finds the property has been abandoned, many states shorten or eliminate the period. Some states lengthen it for borrowers who had paid off a larger share of the original loan before foreclosure. A waiver of the statutory right buried in the mortgage documents is unenforceable in many jurisdictions, though a handful of states will honor it.
Active-Duty Military
The federal Servicemembers Civil Relief Act pauses the clock. Time spent on active-duty military service cannot be counted against a statutory redemption period. A servicemember with a 12-month window who spends 8 months deployed effectively still has the full year of non-service time to redeem.
Who Is Allowed to Redeem
The former homeowner is the obvious candidate, but often not the only one. Many states also give junior lienholders a right to redeem — second mortgage companies, home equity lenders, and judgment creditors whose interests were wiped out by the foreclosure sale. State law sets a priority order among them and can assign each party its own slot inside the overall window. A junior lienholder who redeems takes title and reimburses the auction buyer, stepping into the position the homeowner would have occupied.
This matters if you are the former owner planning to redeem. Another lienholder may act first, so it is worth identifying everyone with a redemption interest before spending money assembling funds.
What It Costs to Buy the Property Back
The redemption price is almost always higher than the auction price, and it grows the longer you wait. The base number is what the buyer actually paid at the foreclosure sale, not your old mortgage balance and not the home’s market value. Several categories of cost get added on top:
- Interest on the sale price from the auction date to the redemption date, at a rate set by statute. Rates generally fall between 2% and 9% per year, and some states tie the rate to the original mortgage.
- Property taxes the purchaser has paid since the sale.
- Hazard or homeowners insurance premiums the purchaser has paid to protect the property.
- In some states, the cost of reasonable repairs and upkeep needed to preserve the property. Improvements and renovations are generally not recoverable.
- Homeowners’ association assessments the purchaser has paid.
The purchaser is usually required to provide an itemized statement of these charges on request. Read it carefully. Inflated or unauthorized entries can be challenged.
The Steps to Exercise the Right
The mechanics vary by state, but the sequence is roughly consistent.
Start by delivering written notice of intent to redeem to the person or entity that bought the property at the foreclosure sale. Some states also require filing that notice with the court or the public official who conducted the sale. The purchaser then provides a statement of the full redemption amount.
Before the period expires, tender the full payment in certified funds, typically a cashier’s check. Depending on the state, payment goes either directly to the purchaser or to a designated public official. Once payment clears, a certificate of redemption is issued, and it must be recorded with the county recorder’s office to clear the purchaser’s interest from the title and put ownership back in your name.
Every step is deadline-sensitive. Missing any of them can permanently forfeit the right.
Can You Stay in the Home During the Redemption Period?
It depends on the state. Some states let the former owner remain in possession until the window closes. Others give the auction purchaser immediate possession rights, which can mean facing eviction even while the right to redeem is still technically alive.
Where possession stays with the former owner, there is a condition attached: no waste, no damage. A court that finds the property is being neglected or actively harmed can shorten the redemption period or give the purchaser early possession. Walking away from the property can produce the same result.
The Practical Money Problem
The hardest part of the statutory right of redemption is paying for it. Someone who just lost a home to foreclosure typically has damaged credit, limited savings, and a short calendar. Producing the full redemption amount in certified funds within a few months is a heavy lift.
Traditional mortgage lenders are unlikely to underwrite a new loan immediately after a foreclosure. Some former owners turn to hard-money lenders, family loans, or retirement account withdrawals, each with its own costs and risks. Others try to negotiate more time or a modified arrangement with the purchaser, who has no obligation to agree. The right is real, but using it takes cash that many people in foreclosure do not have.
When the Redemption Window Closes
If you redeem in time, the foreclosure sale is effectively unwound. The purchaser’s certificate of sale becomes void once the certificate of redemption is recorded, and the property is back in your name. One trap catches people off guard: in some states, redemption revives junior liens that the foreclosure had extinguished. A second mortgage or judgment lien that disappeared when the senior lender foreclosed can reattach to the home, so the debts secured by those liens can come back with the property.
If the deadline passes without redemption, the right is gone for good. The auction buyer receives a final deed and becomes the undisputed owner. The former homeowner loses all interest in the property and can be evicted. There is no grace period and no second statutory right. Once the window closes, it does not reopen.
The Separate IRS Redemption Right
One boundary worth flagging: the federal government has its own redemption right that is not the state statutory right described above. When a foreclosed property carried a federal tax lien, the IRS can redeem within 120 days of the sale or the period allowed under state law, whichever is longer.1Office of the Law Revision Counsel. 26 U.S. Code 7425 – Discharge of Liens The federal redemption amount is the auction price plus 6% annual interest from the sale date plus the purchaser’s net expenses, meaning expenses minus any income the property produced in the interim.2Office of the Law Revision Counsel. 28 U.S. Code 2410 – Actions Affecting Property on Which United States Has Lien If the IRS redeems, it takes title and can sell the property to collect on the tax debt. It is not common, but it exists alongside the state right rather than as a substitute for it.