Rights of redemption often allow a homeowner who has lost their home during a foreclosure sale to regain their home. However, foreclosure redemption rights in Missouri after a sale are extremely limited. While the rights of redemption are applicable for one year, this simplistic statement does not tell the entire story.
Rights of redemption notification
When a home is lost to foreclosure and the homeowner intends to exercise their rights of redemption, there must be a notification made to the buyer as well as to the courts. However, rather than being able to wait the entire year to make that determination, the homeowner must file a claim within 20 days of the foreclosure sale.
Conditions of redemption claims
When the homeowner files a claim to redeem their property after a foreclosure sale, they must put up bond for the balance owed on the mortgage, interest payments up through the date of the sale and for any fees that were incurred during the foreclosure process. This process is explained in Missouri Statutes Section 443.420.
Failure to redeem
When a homeowner places a bond to redeem their property and is unable to secure the financial resources to exercise their rights of redemption, the penalties can be steep. If the homeowner fails to exercise their rights they may be held liable for damages, interest and more as determined by the courts.
Those who wish to post bond must do so not later than the 19th day after the foreclosure sale. This allows the court to review the bond and if needed, insist on additional bonding. The information on what the courts can do regarding a rights of redemption bond are explained in Missouri Statutes Section 443.430. The court has the right (but not the obligation) to insist on additional bonding, to change the terms of the bonding or to assign someone to monitor the bonding process.
For a Missouri homeowner who is considering exercising their rights of redemption, the process may be a significant burden. In addition, if there is any reason that the homeowner is not absolutely confident of their ability to be able to pay the monies owed to the lender including interest, court costs and any other fees assessed, the redemption rights process can be onerous. When facing foreclosure in Missouri, it is a good idea to contact an attorney who understands the foreclosure laws that apply to ensure that a homeowner is well informed and that they are not in danger of losing funds they placed for a bond.