Which is cheaper — reinstatement or redemption?

Reinstatement is typically far cheaper because you only pay past-due amounts plus fees. Redemption requires paying the full sale price. Reinstatement is only available before the sale. Once the auction happens, redemption is your only option — if it exists in your state.

Is there a redemption period after non-judicial foreclosure?

Generally no. Most non-judicial states do not provide a post-sale statutory redemption period. The sale is typically final. A handful of non-judicial states offer limited redemption rights. Judicial states are more likely to offer redemption periods.

Can the deadline for reinstatement be extended?

The reinstatement deadline is set by state law and generally cannot be extended. However the sale date itself can be postponed which extends your effective deadline. Filing bankruptcy also effectively extends the window.

Reinstatement vs Redemption Guide | Dream Legal Solutions

Reinstatement: Fixing the Default Before the Sale

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). Reinstatement is the most straightforward way to stop foreclosure — you pay what's owed and the foreclosure ends.

Cost: Past-due payments + late fees + foreclosure costs (attorney fees, filing fees, publication costs). The total can range from a few thousand to tens of thousands. Key advantage: The loan continues on its original terms. Key limitation: You must have the funds available.

Redemption: Reclaiming the Property After the Sale

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 types:

Equitable Right of Redemption

Exists BEFORE the sale. You can redeem by paying the full loan balance plus costs. Available in all states up to the moment of sale. Rarely used because it requires paying the entire loan, not just arrears.

Statutory Right of Redemption

Exists AFTER the sale. Available only in certain states (see below). Allows you to reclaim the property for a period after the auction by paying the sale price plus costs. The purchaser at auction may also need to be reimbursed for improvements.

States With Statutory Redemption After Sale

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

Head-to-Head Comparison: Reinstatement vs Redemption

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: What's the Difference?