For homeowners in the dark about the foreclosure process, there is a little-known event that may affect their ability to save their homes from foreclosure. This is the issue of the redemption period, and is often overlooked by foreclosure victims who are receiving hourly calls from collectors and letters from foreclosure attorneys. Too many homeowners in this situation end up abandoning their homes and looking for a fresh start. However, the redemption period is designed to help homeowners who want to save the home and those who can not afford to stop foreclosure.
The redemption period is granted to homeowners by state law and gives them additional time to live in the property, without the danger of being evicted. The bank can not continue with the foreclosure process during this period of time. The exact terms and length of time of the redemption period is determined by the state foreclosure laws, and not all states have a redemption period. Some states give the homeowner a lengthy period in which to save the home, and other states have redemption periods of only a few days. Certain foreclosure laws place the redemption period before the sheriff sale, while most others place it after the sale but before the eviction. Homeowners need to research their state foreclosure laws and seek out additional foreclosure information, so that they understand exactly how much time they are being given. This will help them put together various plans to stop foreclosure before they run out of time.
The redemption period serves two main advantages to homeowners in foreclosure. The first advantage is the additional time in which foreclosure victims can work on various methods to solve the foreclosure problem. The extra time may be used to save up to start a repayment plan, or to refinance the loan through a foreclosure bailout, or to sell the house on the open market. Without the redemption period, the homeowners may run out of time to avoid losing the home before they run out of options they want to try.
The other benefit of the redemption period for homeowners is when there are no longer any options available to save the house from foreclosure. Homeowners ending up in this situation can switch their efforts from avoiding foreclosure to begin saving money, paying other debts to repair their credit, and getting their financial lives back on track. Some may say that this is a case of homeowners abusing the concept of the redemption period by not giving the house back to the bank, but foreclosure victims are granted the redemption period to help their own situations, not the bank’s financial position. Getting their economic lives back in order is important for homeowners, even if they are unable to save their homes. In fact, financial recovery is important especially in these cases.
Regardless of the eventual end of the foreclosure process, the redemption period is designed to provide two main benefits to homeowners. The time can be used to implement various plans to stop foreclosure, or it can be used to begin the process of financial recovery. Either way, homeowners should put together a plan to come up with a solution to the foreclosure after determining their rights under the state foreclosure laws. Even in cases where the state does not have a redemption period, it is important for foreclosure victims to know exactly how little time they are being given to work out a plan to prevent from losing their home. Knowing how much time is the first step, followed by implementing a plan to avoid foreclosure.
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