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would a Redemtion Bond proctect a buyer of foreclosed property if the former owners redeemed the property?
Would the buyer be reimbursed for the money they paid down or improvements to the house?

jenkin7 · Posted: Sat Nov 21, 2009 1:08 am Post subject:

Hi consused,

In a judicial foreclosure, a borrower is often allowed a redemption period during which he can buy back the property. A redemption bond is meant to protect the lender against losses in case the right of redemption is exercised. This is required only when the lender issues a loan of amount more than the original amount of the loan the property was foreclosed for. The bond does not protect the purchaser of the foreclosed property, rather it secures the lender issuing a new mortgage on the foreclosed property.

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redemtion bond