In Washington State, a person whose home has been foreclosed upon has a right of redemption pursuant to the Revised Code of Washington. Many mortgage lenders allow people in default to stop the foreclosure process up until the sale of a mortgaged property. However, Washington has a redemption law which provides rights beyond a foreclosure sale. Washington's redemption statute allows a person in default to redeem their foreclosed property even after the property has been sold.
Who May Redeem
According to RCW 6.23.010, a "judgment debtor," or someone in default, has the right to redeem real estate sold at a foreclosure auction. This means a person who has defaulted on a mortgage has the right to buy back foreclosed property within a certain time frame. According to Mortgage News Daily, "It is important to know this because less than ethical lenders and servicing companies will tell borrowers that, once default has occurred, the acceleration clause of the mortgage is invoked and the entire mortgage balance is due and payable."
RCW 6.23.020 provides that a judgment debtor has eight months to redeem property sold at foreclosure. Thus, within eight months of a foreclosure sale, a person who has lost property to a purchaser — typically, the mortgage lender or a bank — has the sole right to redeem it.
The amount to be paid by a judgment debtor or "redemptioner" is typically the amount of the bid, i.e., what the property sold for at auction, and any taxes or interest the purchaser paid from the time of sale to the time of redemption.
Notice of Redemption
Pursuant to Washington's redemption law, a purchaser at auction must send the person with the right of redemption a notice that they have a right to redeem the property within the eight-month time frame. If the purchaser does not comply with the notice requirements, the redemptioner gets another six months --- in addition to the compulsory eight months --- to redeem the foreclosed upon property.
- Mortgage News Daily: Foreclosure Happens, But There Are Solutions
- 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.
Andrine Redsteer's writing on tribal gaming has been published in "The Guardian" and she continues to write about reservation economic development. Redsteer holds a Bachelor of Arts in history from the University of Washington, a Master of Arts in Native American studies from Montana State University and a Juris Doctor from Seattle University School of Law.