What is a right of redemption?

A right of redemption gives a borrower a window to recover ownership of a property after a foreclosure action has begun or completed. The borrower can satisfy the debt obligation by paying the full amount owed, plus accrued interest and foreclosure costs, and the property reverts to them instead of transferring to the foreclosure purchaser.

Two primary forms exist. Equitable redemption arises automatically in most jurisdictions and allows the borrower to pay off the debt at any time before the foreclosure sale closes. Statutory redemption, where available by state law, extends this right for a set period after the sale has already occurred. The duration of statutory redemption varies significantly by state, ranging from several months to over a year in some jurisdictions.

This right matters because it can prevent permanent loss of a property and offers a critical lifeline when a borrower has faced temporary financial hardship but can later come up with funds to satisfy the obligation. The existence and scope of redemption rights also affects property valuations in foreclosure sales, since a buyer's title may remain subject to the borrower's redemption interest for the statutory period.

Borrowers considering redemption or facing foreclosure should consult an attorney familiar with their state's specific rules, as redemption periods, costs, and procedural requirements differ widely. Foreclosure defense attorneys can advise whether redemption is viable and what steps are required to exercise the right.