Not all states have them and for the states that do, the rights they give to homeowners vary widely. California foreclosure law does include the right of redemption in some cases.
Following is a general overview of what rights of redemption laws are.

Mortgage Foreclosure Law: What is a Right of Redemption?
When a home is foreclosed on by the lender, there’s a certain time period that homeowners are allowed – by law – to purchase their home back. This is known as the property owner’s “right of redemption” period. Note, the right of redemption is wholly statutory. What this means is that there must be a specific law on the books in a given state that grants property owners this right.
Right of redemption laws grant homeowners the opportunity to reclaim their property – even if it’s already been sold at auction.
Now that you know what the right of redemption law is, let’s turn our attention to how they can help you stop foreclosure in California.
California Foreclosure Law: The Foreclosure Process
To understand how right of redemption laws can help you prevent foreclosure, we must first tackle the foreclosure process in California.
There are basically two types of foreclosure in the United States – Judicial Foreclosure and Non-Judicial Foreclosure.
What is a Judicial Foreclosure in California?
Judicial foreclosures are handled via the court system, hence the name “judicial.” What happens is, a lender files a complaint that outlines what the debt is and why they should be able to proceed with the foreclosure. Once the lender files, the homeowner is then served and both appear in court to resolve the process.
If the court finds for the plaintiff (the lender), it will issue a judgment for the total amount owed on the loan, PLUS the costs of the foreclosure process – up to and including all legal fees.
Judicial foreclosures in California are rare because they can be time consuming and costly (like most any other legal proceeding) – even if the lender wins. This is why most lenders take the non-judicial foreclosure route in California.
What is Non-Judicial Foreclosure in California?
Non-judicial foreclosures are so desired by lenders because they can avoid going to court altogether. The way a non-judicial foreclosure proceeds is, once the homeowner is in default, they are usually sent a Notice of Default (NOD) by the lender. This puts the homeowner on notice that their loan is in default and that legal action may be taken by the lender.
When a homeowner receives the NOD, they have 90 days under California law to “cure” the situation – eg, bring their home loan current. If they don’t, the homeowner is then mailed a Notice of Sale, which is then recorded (usually at the County Records Office) and published in legal outlets like local newspapers, etc. After all this happens is when a public auction usually takes place.
Now, that you understand the foreclosure process in California, here’s how to get your home back using right of redemption laws.
Mortgage Foreclosure: How Do Right of Redemption Laws Help Homeowners?
In California, the right of redemption law is not as straightforward as it is in some other states, for it can be 3 months or 12 months. How long it is depends on whether or not the property was sold for enough to pay off the existing loan.
California Foreclosure Law: When the Right of Redemption Period is 3 Months
If a home is sold for enough to pay off the secured debt, the right of redemption period is shortened to only three months. Remember when we discussed the Notice of Default above and said that the borrower has 90 days to bring their loan current after they receive it.
Well, this is what makes California law a little convoluted. The 90 days a borrower has to cure their loan after they receive the NOD is called the right redemption period. Many real estate experts point out though that this is not within the true spirit of the law, that it’s not a real statutory redemption period.
But, that’s what it’s called in California.
California Foreclosure Law: When the Right of Redemption Period is 12 Months
If a home does not sell for enough to pay off the secured debt, the right of redemption period is 12 months.
California Foreclosure Law: When the Right of Redemption Period Can Be Extended
If a property under can prove that the foreclosure was brought about because of some type of fraud, or via a lender mistake, then the redemption period can be prolonged. For how long depends on the situation at hand.
California Foreclosure Law: When Right of Redemption Laws Don’t Apply
Deficiency Judgments: If a lender gives up their right to obtain a deficiency judgment, or is for some reason prevented from obtaining a deficiency judgment against a homeowner, right of redemption laws do not apply.
Non-judicial Foreclosures: If your home foreclosure goes through the non-judicial process, there’s no right of redemption. The reason is, most home loans in California are secured by a deed of trust, not a mortgage. This means your home was foreclosed on outside the court process (non-judicial). Most homeowners don’t realize this difference, which is usually known by legal experts like foreclosure lawyers.
One final note about non-judicial foreclosures in California (and Other States)
The non-judicial foreclosure process has different laws in each state. Some require the lender to send a Notice of Default. Others don’t, permitting the lender to start the process with a Notice of Sale. And yet others only require the publication of the Notice of Sale (not that it be mailed to the homeowner first).
This can make the foreclosure process much quicker – bad news if you want to save your home – so it’s imperative that you specific procedure for your state.
How Long Does the Foreclosure Process Take in California?
It varies, but in normal circumstances – eg, all notices mailed out and no contesting from the homeowner – it takes approximately 4 months (120 days).
Avoiding Foreclosure: How Do I Save My Home Using Right of Redemption Laws in California?
In short, pay up. You must pay what is referred to as the “redemption price” of the property. This is usually what the person who bought it paid for it at auction.
Read More in the Foreclosure Business News Series on Right of Redemption Laws
Here are 7 things you should know about right of redemption laws.
Alabama Foreclosure Law & The Right of Redemption

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.