What is a post-foreclosure redemption period?

A post-foreclosure redemption period is a period of time that a homeowner has after their home has been foreclosed, to try and buy it back. In North Carolina, the post-foreclosure redemption period is six months. During this six-month period, the former homeowner has the right to redeem their home by paying off the full amount of the debt, court costs, and other expenses related to the foreclosure. The post-foreclosure redemption period was created as a way to give the homeowner one last chance to save their home. If the homeowner is able to come up with the money and fees needed, they can regain ownership of the home and be relieved of the debt. It is important to note that during the post-foreclosure redemption period, the homeowner is still responsible for making monthly payments on the mortgage, but the payments will be applied to the debt instead of the principal balance. At the end of the post-foreclosure redemption period, if the debt has not been paid off, the home is then sold at a foreclosure auction and the proceeds are used to pay off the debt. During this process, the lender does not have to give the homeowner any money from the sale, as the debt has already been satisfied. In North Carolina, it is important for homeowners to understand their rights to redemption during this post-foreclosure period in order to have the most success in reclaiming their home.

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What is a post-foreclosure redemption period?

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