Can I sell my Home While it is in foreclosure?

Yes, but there is a catch.

 Can I pay off my home mortgage loan while I am facing foreclosure?  What is my right of redemption?

Can I pay off my home mortgage loan while I am facing foreclosure?  What is my right of redemption?

Can I sell my Home While it is in Foreclosure?

Yes!  It is 100% legal to sell your home, even if it is currently in the middle of a court foreclosure proceeding.  You can even sell it after judgment is in place, and even up to 3 days after the sale is confirmed.  

There is one catch.

You must pay off the entire amount of the home loan as part of the closing in order to sell it during foreclosure.  So long as you can do that (and provide free and clear marketable title to the buyer), you are free to sell your home while the foreclosure proceeding is underway.  We might recommend you involve a knowledgeable attorney and real estate agent to ensure all the proper disclosures are made. Call us if you need some help on this front - we might also be able to buy you some more time to sell the home.

The idea here is that you would be exercising your right of redemption under Ohio law.  Read below to learn what that is.

 

What is my right of redemption in Ohio?

You have an absolute right to pay off the entire mortgage balance up to three days AFTER the confirmation of sale.  That is called your Right or Redemption.  It's the law in Ohio by statute. 

The key date to keep in mind in the date the sale is confirmed by the judge.  Click here to learn what the confirmation of sale is, and when it occurs on the foreclosure timeline.

Your right of redemption requires that you pay the entire balance (with all fees and costs added), and not just the amount past due.  You have to pay the ENTIRE amount in order to "REDEEM."

To REINSTATE, you just have to pay the past-due amount.  Reinstating a mortgage loan is based in contract law.  It is available under the terms of most mortgage loans, but you might need to check to make sure.  Also, the time period to reinstate is smaller.  Usually, you can pay the past-due amount to reinstate your mortgage loan only up to the date that the judge enters foreclosure judgment against you. 

You have to pay that entire past due amount in order to contractually reinstate.  The bank is not required to offer you payment plans.

Schedule your free consultation call with us to get all the kinks worked out of your situation.