Can I Buy My Home Back After Foreclosure?

A foreclosure is an action by the lender to take back your home when the mortgage payments fall behind. Some states conduct foreclosures by filing a lawsuit with the Courts, but in Rhode Island the more common practice is to send noticed to the borrower without resorting to filing a case. This type of foreclosure is called a non-judicial foreclosure and it moves pretty quickly. So if you have received a notice of foreclosure, it is important to understand what happens next and what you can do to try and save your home.

One option that is always available, and will put a stop to any type of foreclosure action, is to file bankruptcy. But if your case has already progressed to a foreclosure sale, you might have other concerns. One of those concerns could be whether you are allowed to buy your home back from the lender after the foreclosure is completed. Here is how it works:

•         Notice of the foreclosure must be mailed to the homeowner by the mortgage company, or other foreclosing party and information on foreclosure mediation must be included in this notice.

•         Notice of the foreclosure sale has to be published in the paper, with the homeowner being provided notice at least 30 days prior to the date of first publication.

•         You are not allowed to reinstate your mortgage before the sale, unless there are provisions for doing so in your mortgage. A reinstatement is not a buy back of the property, but is a payment of the past due amount so that the loan is no longer in default.

•         You are not permitted to redeem the property after the sale, which is not necessarily a buying back of your home but has nearly the same effect.

So if you are being foreclosed on and think you can buy back your home, you should talk it over with a qualified professional. Depending on the terms of your mortgage, your rights may be limited. Let us help you stay in your home, and get your other debts in line at the same time. This can be accomplished by bankruptcy, a refinance, a detailed negotiation with your creditors, a refinance, or some other remedy.

For help getting out of financial distress, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.