Using the Right of Redemption for Real Estate Foreclosures in Louisville KY
More and more people in Louisville KY are finding themselves facing foreclosure when they are unable to make good on loan payments on their homes. When this happens, the property that has been foreclosed on often goes to auction or gets handed over to owners of the loan to recoup their money. Once at auction a property is up for grabs to the highest bidder and many homes sell for less than their actual value.
Even after facing foreclosure the original owner still has a chance to regain ownership of his or her property. This is known as the right of redemption. Right of redemption is the right that a debtor has to reclaim property that is being foreclosed on and sold. Homeowners get a certain period of time to get their property back provided they can come up with the necessary funds to make good on their debt. Depending on state version of the redemption laws, homeowners who are facing a foreclosure may have two separate rights of redemption that they can levy in their favor. First is known as a pre-foreclosure equitable right of redemption and the second is known as a post-foreclosure statutory right of redemption. Pre-foreclosure allows them to buy back their property BEFORE it heads to auction. Post-foreclosure allows them to buy back their property within a certain period of time, even after it has been sold to another individual at an auction. The length of time after the sale varies state by state and is usually somewhere between 6- 12 months. For more information about the right of redemption laws in your state, contact a local real estate agent or a lawyer who is experienced with real estate and foreclosure cases.
For example, Tim has a house valued at $70,000. He still owes $30,000 on stopped making due to losing his job. He missed a few months of payments and the lender began foreclosure. Tim could not afford to make improvements to his property in order to list it with a realtor at or above market value. He also could not sell the house on his own. The home is foreclosed on and is put up for auction. If Tim is able to come up with the remaining $30,000 he can buy his home back, oftentimes even if someone at the auction is willing to pay more. In states like Kentucky where post-foreclosure rights are in place Tim could still get his property back by coming up with the money after someone else already bought it.
Contact Sisters Who Buy Houses to discuss your options and how we may be able to help you redeem your rights during one of the most difficult times of your life.