What are the shorter redemption periods for abandoned property?
The redemption period for abandoned residential property (not exceeding four units) is three months unless the claimed debt is more than 2/3 of the original indebtedness. In that case, the redemption period is only one month. For property that is deemed abandoned after foreclosure begins, the redemption period is the greater of 30 days, or until the time to provide notice under the statute expires. Thus, lenders who have commenced foreclosure should pay attention to activity at the property to determine whether the residents have vacated, as it may be advantageous to seek abandonment status early to shorten what might otherwise be the longer redemption period. Q How is a property determined to be legally abandoned? A: The statute describes specific requirements to conclusively presume a property is abandoned, thus enabling the shorter redemption periods. Requirements differ slightly depending on whether abandonment is established before or after the foreclosure proceedings have begun.
