What is the right of redemption?
The right of redemption is a homeowner's legal ability to pay off the full foreclosure debt and stop the sale before a judgment or foreclosure auction occurs; New York generally does not allow post-sale redemption.
In New York foreclosure proceedings, the right of redemption allows a homeowner to halt the process by paying the lender the full amount owed, including principal, interest, costs, and attorney fees. This right exists from the moment a foreclosure action begins through the entry of a judgment of foreclosure and sale. Once you exercise this right, the foreclosure stops and you keep your property.
The redemption right is distinct from refinancing or loan modification. It is an affirmative right that applies even when the homeowner is significantly behind on payments. The key window is before the judgment is entered by the court. After judgment, redemption becomes limited or unavailable in most cases. Critically, New York does not recognize a post-sale redemption period in residential foreclosures, meaning once the property is sold at auction, the homeowner generally cannot reclaim it by paying off the debt.
Understanding the timeline of this right is important for homeowners in the Hempstead area facing foreclosure. The moment you receive a foreclosure notice, the clock begins. If you can gather the funds needed to pay off the entire debt during this pre-judgment period, you can use redemption to stop the sale. Lenders must account for this possibility in their timelines.
Homeowners uncertain about whether redemption applies to their situation or how to execute it should consult an attorney experienced in foreclosure defense to understand their options and the specific amounts owed.