If a property is taken through foreclosure, whether that be a mortgage foreclosure, tax lien foreclosure, or tax deed, there may be an applicable redemption period, or a period of time in which the property can be redeemed by an interested party after the sale. Redemption periods vary from state to state, meaning it’s important for both real estate investors and property owners to understand how they could be impacted. In this piece we’ll explore what a redemption period is and how it works in real estate.
What is a redemption period?
If a borrower or homeowner fails to pay their mortgage or property taxes, the local tax collector or lender has the right to pursue legal action against the borrower to reclaim the money owed to them. With delinquent property taxes, this is done through a tax lien foreclosure or tax deed sale. For a delinquent mortgage, it’s done