What is the Legal Effect of the Special Right to Redeem?
The Special Right to Redeem
Once a sheriff's sale is confirmed, the special right to redeem may apply. The special right to redeem is a statutory remedy created by the Illinois Mortgage Foreclosure Law. If the winning bidder at the sheriff's sale was the bank that initiated the foreclosure lawsuit, and if the purchase price of the property was less than the redemption value (the amount needed to pay off the loan to the lender including all fees and costs), then the borrower has 30 days, from the date of confirmation, to exercise the special right to redeem.
In order to exercise this right, the borrower must pay the sale price bid at the auction, all additional costs and expenses included in the final confirmation order, and interest from the date that the purchase price was paid. However, the difference remains as a lien on the title. Much like the right to redemption, this right is very rarely exercised. Most homeowners will not have the funds to match the sale price plus the additional fees and costs. However, it is important to know that this right exists. A sudden financial windfall can turn this remedy into a reality.