Also known as: statutory redemption periods · redemption period · statutory redemption
Written by attorneys · grounded in primary & secondary sources — see below
A post-foreclosure right granted to the mortgagor and sometimes junior lienholders to recover title to property by tendering the foreclosure sale price plus interest and costs within a fixed time after the sale. This right arises only after the foreclosure sale and is distinct from the equity of redemption that terminates at sale. Where the right exists the purchaser at the sale takes title subject to it until the period expires.
Steven Silva defaulted on a mortgage covering his warehouse. After foreclosure the property sold at auction to Summit Bank for the amount of the debt plus costs. State law grants a sixty-day statutory redemption period. On day forty-five Steven deposited the full sale price plus interest and costs into escrow with instructions for immediate release to the purchaser. The tender satisfied the statutory requirements and restored title to Steven.
Samantha Stone held a junior lien on a commercial building foreclosed by the senior mortgagee. The property sold to Sterling Dynamics. State law permits junior lienholders to redeem within thirty days by paying the sale price plus interest and costs. Samantha tendered the required amount on day twenty but the senior mortgagee objected that only the original mortgagor could redeem. The statute expressly extends the right to qualifying junior lienholders so the tender preserved Samantha's claim.
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The party must tender the foreclosure sale price plus allowable interest and costs. This benchmark differs from the equity of redemption which requires payment of the full underlying debt before sale.
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Yes when the governing statute so provides. The statute in many jurisdictions extends the right after any foreclosure sale whether judicial or by power of sale and the purchaser takes subject to the right until the period expires.
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The mortgagor ordinarily holds the primary right. Statutes typically list the mortgagor first and grant junior lienholders a right only in some circumstances so the mortgagor's timely tender prevails absent explicit statutory language favoring lienholders.
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The period begins on the date of the foreclosure sale. Any tender must occur within the fixed statutory window measured from that date and courts treat a proper escrow deposit made before expiration as timely when the escrow agent is irrevocably bound to release the funds.
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