but the sale price was less than the fair market value of the home, the borrower can challenge the deficiency judgment. If the borrower is able to show that the fair market value of the home was more than the sale price, then the borrower is only liable for the difference between the fair market value and the total debt. (N.C. Gen. Stat. § 45-21.36).
DIFFERENT RIGHTS OF REDEMPTION
Usually, in a deed of trust state, you’ll have the right to redeem your property by paying off the full balance right up to the time of the auction. After the foreclosure sale, you will have no recourse. In contrast, mortgage states usually allow you to redeem the property within a few months after it is sold by paying off the full amount you owe on your mortgage.
RIGHT OF REDEMPTION BEFORE AND AFTER A FORECLOSURE SALE
If you are facing a foreclosure on your home, you should be aware that you have certain rights as a homeowner. One of these rights is the right to redemption, which is a period in which you can redeem (or buy back) your home. You can redeem your home at any point before the foreclosure sale, and you even may be able to buy back your home for a limited period after the foreclosure sale. The right of redemption after foreclosure is only available in some states. As a practical matter, redemption before the foreclosure sale is relatively uncommon because a homeowner who was unable to keep up with loan payments probably will not suddenly have the resources to pay off the entire debt plus interest and fees. Redemption after the foreclosure sale may be more feasible because it allows more time for the homeowner’s financial situation to improve.
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