stredemption

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.


Talk to our home buyers about selling your home >>


<< Back to the Glossary of Real Estate Terms