Is There a Right of Redemption After Foreclosure?
In many states, the former owner of real property that has been
foreclosed upon has the right to redeem the property after foreclosure.
The general rule in Texas is that there is no right of redemption after
foreclosure. A number of exceptions to that rule, however, have
developed. While there is no statutory or common law right of redemption
following the foreclosure of an ordinary mortgage lien, the following
rights of redemption are available under Texas law:
The owner of real property that was sold at a tax sale that either
was the taxpayer's residential homestead, or was land designated for
agricultural use, may redeem the property on or before the second (2nd)
anniversary of the date on which the purchaser's deed was filed for
record. The owner of property other than residential homestead or
agricultural property may redeem the property not later than the one
hundred eightieth (180th) day following the date on which the deed was
recorded.
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After Foreclosure of Condominium Assessment Lien
The owner of a condominium unit used for residential purposes and
purchased by the condominium association at the foreclosure sale of the
association's assessment lien may redeem the unit not later than the
ninetieth (90th) day after the foreclosure sale. No right of redemption
is available if the condominium is purchased by a third party and no
right of redemption is available if the condominium unit was used for
non-residential purposes.
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After Foreclosure of Property Owners' Association's Assessment Lien
The owner of property in a "residential subdivision" may redeem the
property from any purchaser at a sale foreclosing the property owners'
association's assessment lien no later than the one hundred eightieth
(180th) day after the date the association mails written notice of the
sale to the owner. (The association that conducts the sale must send the
owner notice of the sale, and of its right to redeem, no later than the
thirtieth (30th) day after the date of the sale.) Homes in a
"residential subdivision" include subdivisions, planned unit
developments, and townhouse regimes.
The rules relating to the foreclosure of assessment liens by property
owner’s associations became effective January 1, 2002, and the Texas
legislature is currently conducting hearings to consider amending these
rules to make them even more favorable to the homeowner.
For further information on this topic, please contact Beth Tiggelaar
at beth.tiggelaar@strasburger.com.
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