Two Paths to Save Your Home

Reinstatement vs Redemption: What's the Difference?

Reinstatement and redemption are two distinct ways to save your home — but they work very differently. Learn which applies to your state, the costs involved, and critical deadlines you cannot miss.

Reinstatement

Pay arrears before the sale

Redemption

Reclaim after sale (limited states)

Critical Deadlines

5 days before sale typically

State-Specific Laws

Judicial vs non-judicial rules

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Know Your Options

Two Paths to Save Your Home — Know the Difference

Reinstatement and redemption are two distinct legal mechanisms designed to help homeowners preserve their property. Understanding which one applies to you and the critical deadlines involved could make the difference between keeping your home and losing it.

Before the Sale

Reinstatement

Reinstatement means paying the full past-due amount — missed payments, late fees, and foreclosure costs — to bring your loan current. The loan then continues as if the default never happened. In most non-judicial states, you have a legal right to reinstate up until a specific deadline (typically 5 business days before the sale date, or sometimes right up to the moment of sale).

Cost: Past-due payments + late fees + foreclosure costs
Advantage: Loan continues on original terms
Limitation: Must have funds available now
Timing: Only before the foreclosure sale
After the Sale

Redemption

Redemption is the right to reclaim your property after the foreclosure sale by paying the full sale price (or the full loan balance, depending on state law) plus costs. There are two distinct types of redemption rights:

Equitable Right of Redemption

Exists BEFORE the sale — pay full loan balance to redeem. Available in all states.

Statutory Right of Redemption

Exists AFTER the sale in ~20 states — pay sale price + costs to reclaim.

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Don't Miss Your Reinstatement Deadlines

The deadline to reinstate is often just 5 business days before the sale. Get a free review of where you stand and what options remain available to you in your state.

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State Laws

States With Statutory Redemption After Sale

Only about 20 states allow post-sale redemption. These are the most common examples — check if your state offers this important right.

State Redemption Period Cost to Redeem
Michigan 6 months (12 if large deficiency) Sale price + costs + interest
Minnesota 6 months Sale price + costs
Tennessee Up to 2 years Sale price + costs
Alaska 12 months Sale price + costs
Alabama 12 months Sale price + costs
At a Glance

Head-to-Head Comparison

Factor Reinstatement Redemption
Timing Before the sale After the sale
Cost Past-due amounts + fees + costs Full sale price + costs
Loan Status Loan continues on original terms Loan is paid off via redemption
Availability Most non-judicial states Limited to ~20 states
Best For Those who can afford arrears Those who can pay full value

Reinstatement vs Redemption FAQs

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