There are two types of redemption: Equitable redemption and Statutory redemption.
- Equitable Redemption
In every jurisdiction, ?equitable redemption? means the right of the mortgagors, within a certain period of time, before the foreclosure sale, to either bring the loan current, pay it off, or perform their obligations under the mortgages/deeds of trust.
The mortgagor's right of equitable redemption is terminated by the foreclosure action.
- Statutory Redemption
does not have a statutory right of redemption. Texas
Redemption Rights Of The United States
Under federal law, the
First, if the
- In a judicial sale
One year from the date of the sale, unless the junior lien is one arising under the internal revenue laws in which case the United States has 120 days or the period allowable for redemption under State law, whichever is longer, (28 U.S.C.A. Sec. 2410[c]).
- In a nonjudicial sale
Only the period allowable for redemption under state law, if any, unless the junior lien is one arising under the internal revenue laws in which case the United States has 120 days or the period allowable for redemption under State law, whichever is longer, (26 U.S.C.A. Sec. 7425[d]).
The right of the
Federal Preemption Of State Mortgage Law
Under the Supremacy Clause of the United States Constitution, federal law (which is validly adopted and within the constitutional power of the federal government) is the supreme law of the land and supersedes state law.
Consequently, where the mortgage is one in which the
In this respect, though the law of preemption is still far from being settled, the vast number of court decisions hold that the state redemption law is inapplicable.