Tag Archives: redemption period
When an FHA borrower gets in trouble on an FHA mortgage loan, there is a specific set of steps that take place. From the time the first FHA loan payment is missed to the cut-off date to avoid foreclosure after multiple payments have been missed, there are places along the way where foreclosure could be avoided in many cases. But some borrowers wind up in foreclosure regardless, and the loss of the home can be devastating. But is there a second chance for a borrower to get their home back once it goes into foreclosure proceedings? According to the FHA, in some cases the answer is yes thanks to something known as the redemption period. Redemption is a transaction where the original owner of the foreclosed home is allowed to reclaim the home by paying the outstanding balances due plus any costs generated by the foreclosure process on the home.