finance
statutory right of redemption
The statutory right of redemption allows a borrower, in states that provide it, to reclaim property after a foreclosure sale by paying the sale price plus interest and costs within a set period after the sale. Not all states grant this right, and the length of the period varies by state. During the redemption period, the foreclosure buyer may not receive full title.
- Exam tip
- Timing is the key: the equitable right of redemption exists before the foreclosure sale; the statutory right of redemption exists after the sale and only where state law allows.
- Example
- A home sells at a foreclosure auction for $180,000; in a state with a one-year redemption period, the former owner may buy it back by paying that amount plus costs.
Related terms & state variants
Sources
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Last verified: 2026-10-23