Repurchasing the Property

If your state does not allow for redemption of the property, repurchasing the property may be a foreclosure option that your lender would consider.  Unlike rescission of the foreclosure sale (unwinding of the foreclosure sale), a repurchase of the property will not erase the foreclosure.  It will still be filed in the property records and could still show up on your credit report.  A repurchasing of the property would be an agreement between you and the lender for you to “repurchase” the house back from the bank at a mutually agreeable price.  If a repurchase is agreed to, the mortgage company would sell you the property and file a new deed in the property records transferring title to you.  Therefore the property records would show the property being transferred from you to the mortgage company, and then a few months later, from the mortgage company back to you.

Repurchasing the property would require you to obtain the purchase price funds by other means.  Perhaps you are able to obtain the funds to repurchase your property with money from savings, family, or from outside financing.  Obtaining outside financing will likely be difficult in this situation, because you have a fresh foreclosure on your record which will likely make a lender reluctant to provide financing.  Although, if you can establish with a new lender a unique circumstance that caused the foreclosure, or if you can put a sizable down payment on the new loan, it could be possible to obtain a new loan to repurchase the property.

In negotiating a repurchase of the property, it is likely that the lender will want to obtain an appraisal on the property to ensure that the purchase price is close to the fair market value on the property.  Just like purchasing a new property, a repurchase will require a closing with a title company that will require closing costs and fees.

All of the foregoing assumes that you begin trying to have these discussions with the lender fairly quickly after the foreclosure occurs.  As more time goes on (especially if the lender has taken action to evict you from the property), it is likely that the lender will hire a Realtor or other person to begin to market the property for resale.  If it reaches this point and you still desire to keep the property, you could make an offer on the property like any other potential purchaser, assuming that you have the ability to obtain new financing.

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