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The Law Offices of Robert E. Brown, P.C.

The right of redemption means that you can pay the bank in full in order to get your property back. Once the foreclosure auction happens, you’ve lost the right of redemption. Up until that point, you can sell your property. You could refinance your property or you could borrow money from relatives. You could win the lottery and pay off your mortgage. Once the auction happens, however, redemption is gone.

Could I Work With A Buyer Of My Home To Buy My House Back?

In theory, you could buy your house back from the person who buys it at auction. This is an unlikely scenario because if your house sold at auction, you’re unlikely to have the resources to buy the house back. Usually, people who buy a house in a foreclosure auction are buying it for one of two purposes; they want to live in the house with their family or they want to buy it as an investment property. If they want to live in the house, then they don’t want to sell it back to you. As an investment property, if they sell it back to you, they want to sell it back to you at a profit. If you couldn’t pay off the loan amount before the auction, you probably can’t afford to buy it back at a higher price. A buyer may allow you to rent the house from them. That way, you’re going to live in the same house but you won’t own it anymore. You’re going to have to pay rent in order to stay there, however, and renting a house is expensive.

What Happens If The Home Is Not Sold At A Foreclosure Auction?

If the house doesn’t sell at auction, it becomes the property of the bank. In New York, once a bank takes back a property, it, for some unknown reason, is called a “real estate owned” property or REO. Once it becomes a real estate owned property, the bank suddenly becomes very reasonable. If you’re an investor looking to buy a house, this is the best deal available because the bank will take a loss and make good deals with investors. As a homeowner, you now may be able to negotiate with the bank. In my experience, they’re unwilling to give you the benefit of that bargain. If your house is worth three hundred thousand dollars and the bank was owed four hundred thousand, they’re not going to give it to you for three hundred thousand but they might sell it to a third party for three hundred thousand.

Can I Ever Own Property Again If I Have Lost My Property To A Foreclosure?

It is possible to build your credit after a foreclosure. You can pay your bills on time; you can get a copy of your credit report and see if there is anything on that credit report that shouldn’t be there. Just because you’ve lost a house at auction doesn’t mean that you can ever own a house again. My suggestion would be to pay your bills on time and focus on your credit score. Pay careful attention and build up your credit. Start to save a down payment and then you can certainly buy another house in the future.

For more information on Right Of Redemption After Foreclosure In NY, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 766-9779 or (718) 979-9779 today.

Robert Brown

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(212) 766-9779