the sale.
Even if you will not be able to redeem your home after the sale, a post-sale right of redemption can be helpful. It may allow you to stay in the home as long as the redemption period lasts. This can give you time to find your next home and plan your move, reducing stress during the foreclosure process.
POINTS TO REMEMBER:
• A growing number of states are adopting the deed of trust model to secure the borrower’s debt. In most of these states, the title to the property is held by a third-party trustee until you pay off your debt. In other states, the lender holds the title until your debt is paid. • Lenders in title theory states are likely to pursue non- judicial foreclosures because they are quicker and avoid the court process. • All lenders have the option of initiating judicial proceedings — especially if the foreclosure sale of your house does not satisfy your entire debt to the lender. • The type of foreclosure the lender pursues could have ramifications for your finances and whether you have the option to redeem your house after the foreclosure sale.
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