Also known as: statutory rights of redemption · statutory redemption
Written by attorneys · grounded in primary & secondary sources — see below
A post-foreclosure right allowing the mortgagor and sometimes junior lienholders to recover the property by paying the foreclosure sale price plus interest and costs within a statutory period. This right is distinct from the equity of redemption that ends at the foreclosure sale. Where the right exists the purchaser at the sale takes the property subject to it until the period expires.
Spencer Silver defaulted on his mortgage and the property was sold at foreclosure to Sapphire Holdings for $180,000. Within the statutory sixty-day period Spencer tendered the sale price plus interest and costs to the purchaser. The tender restored title to Spencer and cut off Sapphire Holdings' interest.
Sebastian Santos lost his commercial building at a foreclosure sale to Spectrum Financial. During the statutory redemption window Sebastian's junior lienholder Sierra Santos tendered the sale price plus allowable costs. The tender allowed Sierra to step into the purchaser's position and acquire the building subject to any remaining senior interests.
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The mortgagor holds the primary right. Some statutes also extend the right to junior lienholders who hold recorded interests. The purchaser at the foreclosure sale takes the property subject to these rights until the period expires.
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Payment equals the foreclosure sale price plus interest and any lawful costs. The statute keys the amount to the sale price rather than the original debt balance.
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No. The statute requires only that the full amount be tendered within the statutory window. Contributions from family members or other sources satisfy the requirement.
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The equity of redemption ends at the foreclosure sale. Statutory redemption is a separate post-sale right created by statute and keyed to the sale price rather than the debt.
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The mortgagor generally holds priority. Junior lienholders may redeem only after the mortgagor declines or in limited circumstances specified by statute.
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