Losing your home in foreclosure is a distressing experience, but all isn't necessarily lost. A foreclosure typically ends in the public auction of your home, with the highest bidder becoming the owner. When no third parties enter a successful bid, the home usually becomes the property of the foreclosing lender. You may have the right to buy your home back after the foreclosure auction, depending on where you live, or the chance to buy it back from the new owner.
Check your state's foreclosure laws to see if you have the right of redemption after foreclosure. The lender or winning bidder of your home has to give your home back if you follow all the procedures for invoking the right within the time period allowed by law. Right of redemption laws vary by state.
Complete all the necessary paperwork to invoke your right of redemption. You'll have to pay the money you owed on your loan plus the other expenses the lender or bidder is allowed to claim, such as interest and penalties. Follow the requirements for the redemption right and pay what you owe before the legal deadline for you to claim the right passes to get your home back. Period?")
Contact the lender to get the auction details if your state doesn't have a right of redemption. Ask who won your home at auction.
Negotiate to buy your home back if the lender is the owner. Lenders usually sell foreclosed homes through a local real estate agent. Contact the lender's agent to begin the process. Ask if the lender will refinance the loan if you're worried about financing. The lender may work with you if you have the income to cover the payments and a co-borrower with good credit.
Check local real estate listings to see if your home is listed if someone won your home at auction. Respond to your home's listing to start the sale negotiation process to buy your home back.
Contact an area real estate attorney to review the foreclosure if you think your lender violated any laws. The court may review the case and return your home to you if your lender is found at fault.
- Right of redemption time periods vary widely by state and range from 30 days to two years after the foreclosure sale.
- You may have the opportunity to rent your home from the lender after a foreclosure if you can't afford to buy it back. Ask the lender if it has a rental program for foreclosed homes.
- Those serving in the military have special rights under federal law during periods of deployment. A court foreclosure action is paused until the service member returns, Speak to an attorney if your home was foreclosed on while you were deployed.
- Foreclosure damages your credit. You may need help from a friend or family member to finance your home purchase if you need a loan.
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