Foreclosure with Redemption Period

[Isaiah Moore]

Hi all,

I was curious if anyone has purchased a property at foreclosure auction in a state with post-sale redemption periods? I was looking at purchasing a property in Iowa, but realized that it has a one year redemption period.

Does this mean I can not have title property to the property for a year? Additionally, at any point in the next year the party foreclosed on can pay back the amount I spent at the sale (plus interest) and take back ownership of the property?

I am not interested in this property regardless, so not looking for specific advice, but any perspectives or resources would be appreciated. I tried reading the relevant code and some case law, but want to make sure I'm not missing anything.

Thank you!

[Peter Walther]

Quote from @Fernando Alonso:

Hi Isaiah,

Great question.

First off, it’s important to keep in mind that each state has its own foreclosure laws, and even within the same state, local procedures and timelines can vary depending on the county or the type of foreclosure (judicial, non-judicial, or tax-related).

Foreclosure investing can be a great niche, high returns and low risk if you conduct proper due diligence and understand the legal framework. But to do it successfully, it’s essential to focus on a specific market, study its behavior over time, and become familiar with its unique legal and operational processes. That’s how you reduce surprises.

As for redemption periods, yes, states like Iowa or Alabama have relatively long redemption periods, sometimes several years. During this time, the previous owner can redeem the property by repaying what you paid at auction (plus interest, fees, and sometimes penalties), meaning you wouldn’t receive full title or possession rights until the period expires.

By contrast, in a state like Florida, where I specialize, the redemption period after a foreclosure auction is only 10 days. Once those 10 days pass, the court issues a Certificate of Title, and the property is legally yours, free and clear of that redemption risk.

Hope this helps. 

If I'm not mistaken, F.S 45.0315 provides that the right of redemption in Florida runs through the issuance of the Certificate of Sale (CS), not the Certificate of Title (CT).  F.S. 45.031(4) provides that after the sale the Clerk shall promptly issue the CS, which in my experience is generally the same day as the sale and at that point the mortgagor's and subordinate lien holder's, right of redemption is extinguished.  F.S. 45.031(5) provides that if no objections to the sale are filed within 10 days after the filing of the CS the Clerk shall issue the CT.  Of course, anyone filing an objection has to provide the Court with a valid basis for the objection.