Legal Definitions - redemptioner

A redemptioner is an individual or entity who exercises a legal right to reclaim or buy back property, typically real estate, after it has been subject to a mortgage default, foreclosure, or other lien. This right allows them to regain full ownership by paying off the outstanding debt, interest, and any associated costs within a specific timeframe defined by law or contract.

Here are some examples to illustrate the concept of a redemptioner:

• Example 1: Reclaiming a Foreclosed Home

  After losing her home to foreclosure, Ms. Rodriguez discovered that her state law provides a "statutory right of redemption" for a period of six months following the foreclosure sale. During this time, she managed to secure a loan from a family member. She then paid the new owner (who purchased the property at the foreclosure auction) the exact amount they paid for the house, plus any interest and allowable fees. In this scenario, Ms. Rodriguez is the redemptioner because she exercised her legal right to buy back her property after it had been sold due to foreclosure.

• Example 2: Preventing Loss from a Tax Lien Sale

  Mr. Davies owned a vacant lot but fell behind on his property taxes for several years. The county eventually sold a tax lien on the property to an investor. This meant the investor had the right to eventually take ownership if the taxes weren't paid. Before the investor could finalize the transfer of title, Mr. Davies paid all the overdue taxes, penalties, and interest directly to the county. By doing so, he cleared the lien and prevented the investor from taking ownership. Mr. Davies acted as the redemptioner, exercising his right to redeem his property from the tax lien.

• Example 3: An Heir Saving an Inherited Property

  Upon her grandmother's passing, Emily inherited a small cabin that had a mortgage. Due to an administrative oversight during the estate settlement, a few mortgage payments were missed, and the bank initiated foreclosure proceedings. To prevent the loss of the family cabin, Emily quickly paid the overdue mortgage installments, late fees, and any legal costs incurred by the bank, bringing the mortgage current and stopping the foreclosure process. Emily is the redemptioner because she stepped in to pay the defaulted debt and reclaim the property from the threat of foreclosure, thereby preserving her inheritance.