How Does the Right of Redemption Work as a Foreclosure Defense?
Michael Poe: An Example of a Redemption
Michael is a mobile application developer. During the economic downturn, he was laid off from his job and fell behind on his mortgage payments. While he was unemployed, he spent his time developing applications for use with social media platforms. A judgment was entered against him in his mortgage foreclosure case. The judgment amount was $385,730.00. A month after the judgment was entered, a large social media platform offered to purchase one of Michael's applications for integration into its website's services.
The application, which made it easier for people to find food and drink specials in their immediate area, had become very popular in the Chicago area. The company purchasing Michael's application gave him $750,000.00 and some stock in the company. After paying his taxes, Michael was able to pay the judgment amount to his lender. This amount was sufficient to redeem Michael's loan. He now owns his home free-and-clear and the foreclosure lawsuit was dismissed.