Losing your home through foreclosure can be frustrating as you may lose all of the equity that you have built up in the property. If you have recently lost your home to a foreclosure and the sale has already occurred, you might be able to reverse the sale or get the property back through the right of redemption.
When dealing with a foreclosure, you need to be aware of the redemption period that may be available in your state. Many states offer redemption periods that allow homeowners to get their homes back even after the foreclosure auction has occurred. With this option, you pay the amount that you owe on the mortgage and any applicable fees, and then you get to take the house back from the person who purchased it at auction.
Each state has specific laws about when a redemption can occur. Some states do not allow any redemption period, including Colorado, Florida and Georgia. If you live in one of these states, you will not be able to redeem the property after the sale has occurred. If you live in a state that allows redemption, the time limit for the process can vary significantly. Some states only allow 20 days, while others allow up to two years.
Challenging the Sale
In some cases, you may also be able to challenge the sale of property if you believe that it was unfair in some way. For example, if the seller of the property did not sell the property for an adequate sum, you might be able to challenge the sale and get it reversed. If the seller allows a property with a significant amount of equity to be sold for a small sum of money, a judge may reverse the sale.
Although there may be some options for you to get a foreclosure sale reversed, these are typically not your best bet. If you want to keep your house, the best option is to work out a solution before the foreclosure occurs. For instance, most lenders will consider a loan modification or a special forbearance plan before they will foreclose on the property. You might even be able to refinance the loan and avoid foreclosure.
- Mortgage News Daily; Foreclosure Happens, But There Are Solutions; Glenn Setzer; Aug. 2, 2005
- Realty Trac; Foreclosure Laws and Procedures By State
- Lawyers.com; Real Estate Foreclosure and Redemption
- Foreclosure Fish; How to Reverse a Sheriff Sale, Foreclosure Auction, Trustee Sale; Sept. 9, 2009
- Cornell Law School Legal Information Institute. "Right of Redemption." Accessed June 15, 2020.
- U.S. Department of Housing and Urban Development. "Redemption." Accessed June 15, 2020.
- FindLaw. "Regaining Ownership After Foreclosure: Statutory Redemption." Accessed June 15, 2020.
Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.