It can be hard to remain a home owner in the modern world. There are so many perils to face that can stack up against you when you least expect it. Defaulting on a mortgage payment is every home owner's nightmare, and for good reason. The thought of interest payments, late fees, and even being foreclosed upon is the stuff of nightmares. On top of it all, it's far easier to miss a mortgage payment than you may think. A lay off from your job or a serious illness that comes with a high insurance deductible can knock you off your feet. If the worst should occur and you lose your home, what then?
Can Foreclosure Statutory Redemption Laws Help You Regain Your Lost Home?
There may be a chance that you could be able to regain the home you have lost due to the foreclosure process. A special set of foreclosure statutory redemption laws exist in some states. Thanks to these statutory redemption laws, you just might be able to claw back into a position to where you legally regain control of your property after first coming to a compromise with your creditors.
Who do You Have to Deal With in Order to Reclaim Your Property?
What's the catch? Statutory redemption laws allow the person who was foreclosed on to reclaim their property under one condition. You need to be able to pay the full amount of what your property sold for at the foreclosure sale. You will also need to pay a certain rate of interest, known as statutory rate of interest, to the person who bought the property at the sale. This person will, in almost every case, be the holder of your mortgage or their appointed trustee.
How Does the Statutory Redemption Process Work on Your Behalf?
The statutory redemption process will begin when you make a special demand, which must be made in writing, to the person who purchased your property at the sale. This demand will consist of a special request for a full statement of the monetary amount that will be required from you if you are going to reclaim your property. In other words, you are asking for an invoice that you can then determine whether or not you are able to pay.
After You Receive Your Statement, It's Up to You to Pay It Off
After the person who bought your house receives this demand, they will have a certain amount of time to send you a fully itemized statement of the amount that is required. The time limit for them to do so will vary according to the state you're in, but will generally be about 10 days. Once you receive this statement, you can make up your mind as to whether or not you intend to pay the bill and reclaim your home. Depending on state regulations, you may or may not have to foot the bill for any renovations that have been made to the property during the time it was in the hands of the purchaser.
If You Are Not Able to Pay, You Will Forfeit Your Claim
As noted above, once you have received your statement, it's up to you to pay or not pay it. If you are unwilling or unable to pay off the statement, you will have to forfeit any and all future claims on the property. The person who purchased the home at the sale will then be in possession of the title, as well as all rights and other interests in the property. If you are still living in the home after the sale has been concluded and you have forfeited your claim, you will likely be evicted. In any case, you now have no choice but to vacate the property or face prosecution on trespassing charges.
How Long Do You Have to Use the Statutory Redemption Clause?
Depending on whether or not you live in a state that has a provision for the statutory redemption clause, you may have anywhere from 30 days to a full two years to make use of it. In many states, there are special strictures on the statute that limit your ability to have recourse to it. For example, certain states will allow a judge to reduce or even revoke your right to use the statute if it is discovered that you have abandoned the property.
It's Important to Understand Your Statutory Redemption Rights
Being foreclosed on can be a painful and disorienting experience. It's important that you fully understand all of the rights that you possess. It's an excellent idea to meet with an attorney who can help you to understand and make full use of your statutory redemption rights. This is an excellent chance for you to reclaim your property and rebuild your life.