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.
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.