Expert: Dick Dennis - 9/21/2006

Question
If your home is sold at the courthouse step. Do you as the home owner still have a time period to redeem home? And if so at the orginal price or do you need to pay the price to sold for at auction?

Answer
Each state has it's own agenda regarding redeeming the foreclosure of a property, Rose. You should ask your friendly title company what it is for your state. But in virtually all states the borrower, as anyone else, may bid at the foreclosure auction . . . with all cash or equivilent.

However, unless it is an extremely rare situation, the borrower will have to redeem the property for what he/she owes to bring everything current, including the loan balance, fees, costs and any accumulated interest. When you bid at the auction, the amount usually starts at this figure. If the lender finds it difficult to get anyone to pay this amount, after a short period of time (depending on the lender) the lender will lower the amount and anyone may approach the lender to make an offer to buy it.

Hawaii has no redeeming period, for example, but Illinois has a year. That's why I suggest you ask a real estate attorney or title company in your state. I do wish you well.

Dick Dennis             dixiedee13@aol.com