Legal Definitions - redemption period

Definition: The redemption period is the amount of time given to a borrower who has defaulted on their mortgage or failed to pay property taxes to reclaim their property by paying off the outstanding debt or charges.

Example: Let's say that John has fallen behind on his mortgage payments and the bank has foreclosed on his home. In some states, John may have a redemption period of 6 months to a year to pay off the outstanding debt and reclaim his property. During this time, John can still live in the home, but he must pay the outstanding debt plus any additional fees.

Another example: Sarah owns a piece of land that she has not paid property taxes on for several years. The county government has placed a tax lien on the property and is planning to sell it at a tax sale. However, Sarah has a redemption period of 1 year to pay off the outstanding taxes and reclaim her property before it is sold to someone else.

These examples illustrate how the redemption period gives borrowers a second chance to reclaim their property by paying off the outstanding debt or charges. It is important to note that the length of the redemption period varies by state and type of property, so borrowers should consult with a legal professional to understand their rights and options.