How to Waive Right of Redemption After Foreclosure

How to waive redemption.

The laws in some states permit an owner of real estate in foreclosure what is known as a right of redemption. The right of redemption establishes a period of time in which the owner of foreclosed real estate can pay the mortgage lender the amount determined to be due and owing on the property, including the balance on the loan and all fees associated with the foreclosure case. The redemption period varies from state to state but generally lasts anywhere from 30 to 90 days following the foreclosure sale. There is a process through which the right of redemption is waived.

Things You'll Need

• Written waiver of right of redemption

Instructions

1. Draft a waiver of right of redemption. In the alternative, the home mortgage lender likely has a standard waiver form--either to fill out or to use as a template to draft a waiver.

2. Include in the waiver a concise statement that the property owner in foreclosure fully understands the right of redemption. Specifically state that she understands that she has a set amount of time to pay off the balance on the existing mortgage loan and all other fees, costs and charges and maintain ownership of the real estate.

3. Insert a clause that makes clear the homeowner in foreclosure understands that the waiver of the right to redemption is irrevocable.

4. Execute the waiver of right to redemption in front of a notary public. The homeowner signs the document.

5. File the waiver of right of redemption with the clerk of the court in which the foreclosure case is pending.

Tips & Warnings

• Consider retaining a qualified and experienced attorney to draft a waiver of right of redemption. Although the state and local bar associations cannot make specific recommendations of legal counsel, these groups do maintain directories of attorneys in different practice areas. Contact information for these organizations is available through the American Bar Association.

• The homeowner must sign the waiver of right of redemption as her free and voluntary act. If there is any evidence that she was coerced or forced into signing the waiver in any way, the instrument can be declared null and void by the court.

References

• "The Foreclosure Workbook"; Carla Douglin; 2007
• "Property Law: Rules, Policies, and Practices"; Joseph William Singer; 2006
• Realty Trac: Foreclosure Laws and Procedures by State

Resources

• United States Foreclosure Laws: State by State
• American Bar Association: Directory of State and Local Bar Associations