Right of redemption
An owner's right to get a property back after a foreclosure or tax sale by paying the sale price plus interest and costs within a set period.
Definition
A right of redemption is the owner's right to get a property back after a foreclosure or tax sale by paying what the buyer paid, plus interest and allowed costs, within a period set by law. Before the sale, owners can generally stop a foreclosure by paying the full debt, which is a separate right.
Post-sale redemption periods differ widely by state. In Minnesota, for example, the mortgagor can generally redeem within six months after a foreclosure sale by advertisement, or 12 months in certain cases, under Minnesota Statutes section 580.23. Other states allow no redemption after most foreclosure sales. Tax sales have their own redemption rules. For a buyer at auction, a redemption period means you may not get clear title or possession until it ends. For an investor talking to the owner, an open redemption period can leave room to buy the owner's interest. Rules vary by state; confirm with a local real estate attorney.
Source: revisor.mn.gov
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