November 19, 2020
Redemption rights are triggered if you lose your home through foreclosure. When a homeowner fails to pay their mortgage, the lender will eventually file an action to foreclose on the mortgage. After there is a judgement, the Court will order the property sold to satisfy the judgement. Once that sale is held by the sheriff, the borrower has a set period of time to redeem (or buy back) the property at the amount the property was sold for at the sheriff’s sale.
The length of time varies depending on the amount owed from the original mortgage at the time of foreclosure, including other various charges. Statutory redemption laws give the homeowners more time to obtain the funds necessary to reclaim the home, but these rights can be extinguished if the property is vacant. In some states, the law allows the foreclosed owners the right to live in the home themselves or rent out the home to renters during the redemption period, while acquiring the funds necessary to buy back their home.
Statutory redemption rights vary from state to state, and not every state guarantees one for homeowners. These rights of redemption are salable, which means they may be sold, and there is an entire industry dedicated to purchasing the redemption rights on distressed property from these homeowners. Purchasing these rights allows the highest-bidding winner at auction on the foreclosed property to take possession before the redemption period has expired. For example, a contractor might purchase the foreclosed property and the rights of redemption, allowing them to take possession before the redemption period is over, and renovate the home quickly to re-list it on the market for profit.
Juris’ lawyers are some of the few attorneys in Kansas experienced in representing both homeowners who are facing foreclosure, and the firms and individuals who purchase the redemption rights to distressed property. There are statutorily required documents that must be created and filed to secure these rights and we can help you navigate these murky legal waters to ensure you get the rights you paid for, or get the money for the rights you sold. We have dedicated thousands of hours to working particularly with house-flippers in Kansas and Missouri.
With our years of experience, the attorneys at Juris are dedicated to helping you realize your legal goals. Whether you are a homeowner, firm, or individual inquiring about redemption rights, we can help you! Feel free to contact us today to request a consultation, or call us at (913) 764-8844 with any questions or concerns you have regarding your case.