What is a Redemption Period?

If saving your home from foreclosure is a very real necessity then taking advantage of additional time to stay in the home using the redemption period may help you. Many people think once the creditors start calling regarding a defaulted mortgage, there aren’t any other ways to get out of it, but by utilizing the redemption period, you just may be able to buy yourself some more time.

About the Redemption Period

In order to better understand the redemption period and how it can be helpful when you’re in the process of saving your home from foreclosure, it’s a good idea to understand what happens when your home is potentially being foreclosed. If you’ve defaulted on your mortgage payments, your bank gives you a certain amount of time to get back on track before they will threaten to put your house in their possession. As time progresses and no sufficient payments are made, your home will be put up for auction to be sold.

Many homeowners think that after they have been officially notified of the auction and eviction, they have to pack up and leave. But depending on whether your state honors a redemption period, you may be able to stay in the house for several days – or even weeks. In order to determine how long you can stay in your home during this period, its good to check your state foreclosure laws.

Using the Redemption Period to Your Advantage

Since the redemption period is a time that no foreclosure activity can be taken against you, you can utilize it to your advantage. Here are a couple of options:

• Try to save your home. While you’re in this period, you can try to gather money, or apply for government programs, that may be able to help you save your home. Also, you can try a last-ditch effort to work out a deal with your mortgage lender so that you don’t have to move out at all.
• Create a “plan b.” If the above doesn’t work, you can use this time to save money and pay off other creditors so that you’ll be in a better position to acquire new housing.

Saving your home from foreclosure is not as easy as some would hope, but if you have a redemption period to take advantage of, you may be able to come up with more time to avoid losing your biggest asset.