Most people who buy a house signed a mortgage with a lender. The signed mortgage document grants the lender the authority to sell the property, should you fail to make the required payments on the loan. The process of selling the property is referred to as “foreclosure.” Upon the sale of the property, the lender uses the proceeds to pay off the outstanding debt. In some states, and under certain circumstances, homeowners have the right to redeem the home for a certain amount of time after the foreclosure. In other words, the homeowners have a period of time to get their home back. This time frame is referred to as the “Foreclosure Right of Redemption Period.”
What is the Foreclosure Right of Redemption Period?
A right of redemption period may refer to a homeowner’s ability to save the home from foreclosure prior to the sale by paying off the mortgage balance, fees and costs prior to the foreclosure sale. It may also refer to the ability of the homeowner to repurchase the home after the foreclosure sale by paying a specified amount of money by a specific date. All states allow homeowners to redeem the property and save the home from foreclosure prior to the foreclosure sale. The homeowner would need to pay off the remaining mortgage balance, as well as fees and costs. This is referred to as the “equitable right of redemption.”
Only around half of the states have a law in place granting homeowners the right of redemption after the foreclosure sale. This is referred to as the “statutory right of redemption.” Usually, in states that have a statutory right of redemption, the homeowner must pay the bid price, plus interests and fees to the person or entity who purchased the home at the foreclosure sale. Arkansas does allow for a right of redemption period after the foreclosure sale, but it is only available under certain circumstances. If the property was foreclosure through a non-judicial foreclosure process, then there is no right of redemption.
In some states, the mortgage lender must go through the court to foreclose. This is referred to as “judicial” foreclosure. Other states allow the lender to choose an out of state foreclosure process referred to as “non-judicial foreclosure”, and Arkansas is one of these states. In fact, many foreclosures in Arkansas end up being non-judicial. Again, if a property in Arkansas was foreclosed upon through a non-judicial foreclosure process, then there is no right of redemption. If it was through a judicial foreclosure, however, there is a right of redemption period. The home sold through a judicial foreclosure sale can be redeemed by the homeowner within 12 months after the sale.
Arkansas Wrongful Foreclosure Attorney
If you are facing foreclosure, there are still ways to save your home. Reach out for help. Attorney Bryce Cook stands by his clients as he fights to save their homes. Contact the Law Offices of Bryce Cook today.