What it means
The equity of redemption exists in every state and lets you save the home by paying the full amount owed, plus costs, before the foreclosure sale. It is different from a statutory redemption period, which only some states offer after the sale. In practice, homeowners exercise this right by paying off the loan through a refinance or by selling the home before the auction date.
With a sale date two weeks away, Leah sold her house for $240,000; the $171,000 payoff was wired at closing, which exercised her right to redeem and left her the remaining equity.
Why it matters to you
When a notice, a death in the family or a house you can't keep shows up, the words on the paperwork decide your deadlines and your choices. Understanding them early keeps more options — and more of your equity — on the table.
What to know and do
Selling before auction is the most common way homeowners use this right.
The payoff amount includes foreclosure fees, so request a fresh one shortly before closing.
Coordinate early with the title company so the payoff arrives before the deadline.
Request a payoff statement.
Decide between refinancing, borrowing or selling.
Close before the auction date.
Confirm the foreclosure is dismissed or cancelled.
- Ends
- At the foreclosure sale (generally)
- Amount
- Full payoff plus allowed costs
- Typical method
- Sale or refinance
Rules, deadlines and forms vary by state, county and the exact wording of your loan, court or tax documents. For decisions with legal or tax consequences, talk with a licensed attorney, tax professional or HUD-approved housing counselor. This is general information, not legal advice.
General information, not legal advice. Rules vary by state.
- Tell your buyer the auction date up front.
- Ask the trustee to confirm receipt of payoff.
- 1Request a payoff statement.
- 2Decide between refinancing, borrowing or selling.
- 3Close before the auction date.
- 4Confirm the foreclosure is dismissed or cancelled.
Waiting until after the sale, when this right has typically ended.
Tell us the address and what's going on. We pull the property facts, show you your options side by side — including ones that don't involve selling to us — and never pressure you to sign.
See every situation we help withQuestions about Equity of Redemption
What is Equity of Redemption in real estate investing?
A homeowner's right to stop a foreclosure by paying the full debt before the sale happens. The equity of redemption exists in every state and lets you save the home by paying the full amount owed, plus costs, before the foreclosure sale. It is different from a statutory redemption period, which only some states offer after the sale. In practice, homeowners exercise this right by paying off the loan through a refinance or by selling the home before the auction date.
Why does Equity of Redemption matter to investors?
When a notice, a death in the family or a house you can't keep shows up, the words on the paperwork decide your deadlines and your choices. Understanding them early keeps more options — and more of your equity — on the table.
What's the most common mistake with Equity of Redemption?
Waiting until after the sale, when this right has typically ended.
Are there legal risks with Equity of Redemption?
Rules, deadlines and forms vary by state, county and the exact wording of your loan, court or tax documents. For decisions with legal or tax consequences, talk with a licensed attorney, tax professional or HUD-approved housing counselor. This is general information, not legal advice.
Is this the same as a redemption period?
No; this applies before the sale.
Can I partially pay?
No; it requires the full payoff.
Can a sale fund it?
Yes, that's the most common method.
What if the payoff seems wrong?
Ask for an itemized statement and dispute in writing.
Dealing with this right now?
Get a no-pressure cash offer and see all your options side by side. No repairs, no showings, and you choose the date.