extensive. Although it could be navigated by a homeowner, I highly advice you use a Realtor proficient in short sale negotiations.
YOUR RIGHT OF REDEMPTI EMPTION
During the pre-foreclosure period, you can attempt to keep your property by settling your debt to the lender. That debt will likely include the full amount of your loan, any delinquent taxes, late fees, and liens — such as a second mortgage — as well as any costs your lender has incurred related to foreclosure, such as filing and legal fees. Catching up and redeeming your home before the foreclosure sale is authorized under what is called the equitable pre-foreclosure right of redemption. (You can find specific rules about redemption processes that apply to you by reading your state’s laws on foreclosure.) Even after your property is foreclosed and sold, your state’s laws might allow you anywhere from 30 days to two years to buy it back from whoever purchased it at the foreclosure sale. This is true in many states that rely on judicial foreclosures. (I provided a list in Chapter 1.) In this case, however, you must reimburse the new owner everything they paid for your home, along with interest and any associated fees. This is called your statutory right of redemption. Perhaps you can return to your home for less than the original mortgage if the home has sold for a price far below its fair market value at the foreclosure auction. Who knows? You might even recoup your equity by redeeming the property for the foreclosure sale price, selling it for the fair market value to another new buyer, and keeping the difference. As we’ve already noted, your financial condition might not be at its best right now, so coming up with a lump sum payoff might be beyond your ability. If settling your debt — whether
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