medium · National Real Estate Exam financing
A borrower is facing foreclosure and wants to know about the 'statutory right of redemption.' You should explain that this right:
- Is a right created only by federal statute, applying identically in all fifty states after any sale.
- Allows the borrower to reclaim the property after the foreclosure sale has occurred, if permitted by state law.
- Requires the borrower to pay only the missed installment payments and accrued late fees to stop the pending foreclosure.
- Prevents the lender from ever pursuing a deficiency judgment against the borrower after the foreclosure sale is finalized.
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