Statutory Redemption

The opposite of equitable redemption, this is a person's right to reclaim his/her property after the home has been sold at auction. If the home has been sold at auction, the person may repurchase the home from the buyer if he/she can payback the full selling price from the auction as well as all legal fees associated with the process.

Statutory redemption does not exist in every state. However, when a person is able to reclaim their property through statutory redemption, the previous buyer from the auction has no recourse and cannot prevent the person from redeeming his property.

Example:
Mary Pepperidge was recently foreclosed on. Her home sold at auction for $125,000 to Marcus Moneybags. If she is to redeem her property, the legal fees may cost $2,800. Mary wishes to exercise her right of statutory redemption to save her property.

Six months after the home has sold at auction, Mary has come up with the $125,000 sales price and the $2,800 for legal fees. Mary Jane has the right to buy the property back from Marcus for $127,800, and Marcus would have no right to stop the action, even though he has been living there for six months.

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