Homeowners Rights in Foreclosure

It's important to know homeowners rights in foreclosure, even if you are in the midst of financial hardship. When a lender is in the process of foreclosing on a home, the homeowner can still exercise several rights. Events may make the struggling homeowner feel that he has little control, but in a few areas, the law does provide certain rights.

Foreclosure Time Frame
The lender is required to provide the homeowner with a written notice that the property is being put into foreclosure. During the foreclosure process, the law allows the homeowner the opportunity to pay in full at any time before or after the foreclosure notice to make the foreclosure proceedings stop. The homeowner can discuss payment options with the lender, including the option of a private sale or short sale. Other options to avoid foreclosure that must be discussed with the homeowner is a loan modification, forbearance plan or alternative repayment plan.

Occupancy Versus Eviction
The homeowner has the right to stay on the property during the foreclosure proceedings because foreclosure and eviction are two separate matters. The condition of staying in the home under foreclosure is that the homeowner must provide continued maintenance of the home and take responsibility in paying property tax and homeowner's insurance. During this time, it is the homeowner's right to bar anyone from entering the home without permission. In other words, until the court decrees the home is the property of the lender, the homeowner has the right to bar anyone else from intruding.

Right To Redemption
One of the most significant rights that a homeowner has during the foreclosure proceedings is the right to redemption. This occurs when the property goes through the foreclosure process and the homeowner buys the property back from the lender. The homeowner pays the foreclosure sale price plus interest. This redemption right can benefit the homeowner whose personal financial situation may have turned around within 6 to 12 months after the foreclosure proceedings. Not all states allow the right of redemption to homeowners, and the time period allowed for right of redemption varies from state to state.