Foreclosure is never a pleasant experience, so it is important to be aware of where you stand once your property has been foreclosed. Once the proceedings have been put in place, you will have a limited amount of time to catch up on your mortgage payments before your lender accelerates the payments to the point where they will accept nothing less than full payment if you intend to keep the property. The amount of time you have for this will differ depending on the loan provider, but it will usually be no more than a couple of months.
If you are unable to meet these conditions in the timeframe provided, hope is not necessarily lost. There are a number of things you can do to try to maintain possession of the property, particularly if you have maintained a right to redemption on the property.
It is important to note that not every home is eligible for redemption, so it is important to find out if you even have the right before trying to exercise it.
To be eligible, your home will need to have been seized via a judicial foreclose order, in which the lender files a foreclosure suit in court. This process usually takes longer than other types of foreclosure, often lasting up to a year before the lender has undisputed control of the property. This offers you a timeframe in which you can try to buy back the home before it goes to auction.
As mentioned, a judicial foreclosure will often take a year to complete, which usually means that you have about that amount of time to raise the required funds to buy back your home. However, this is not guaranteed and there will be cases where you have far less time to achieve the same outcome.
This is particularly the case if the loan company brings the house to auction quickly and a buyer is found who will pay the full asking price for the property. In these cases you will only have about three months to match the offer ad buy the home back. After this period has passed you lose the right to buy your home.
The price you will pay to redeem your home is not necessarily going to be the amount that you owed to the lender at the time of foreclosure. In fact, you will often find that you end up paying more to buy the property than you would if you had just maintained the mortgage payments.
In most cases the amount you pay is going to be equal to the amount the lender would ask for if the property was placed in an auction, plus any associated interest charges. Furthermore, you will usually be asked to pay the owner for any repair work undertaken in addition to taxes and insurance for the period in which they owned the home. Furthermore, you will also be required to pay any subordinate liens attached to the property before you can buy back your home.