Oregon 30-Hour Real Estate Law Practice Test

Which statement about the homeowner's right of redemption is accurate?

1. It always guarantees recovery of the property

2. It typically extends indefinitely after foreclosure

3. The window for redemption with REOs may have expired

4. It allows homeowners to modify their loan terms post-foreclosure

The correct answer is: The window for redemption with REOs may have expired

The statement related to the homeowner's right of redemption that is accurate is that the window for redemption with Real Estate Owned (REOs) may have expired. In the context of foreclosure, the right of redemption allows homeowners to reclaim their property after a foreclosure sale, but this right is not unlimited. The timeframe for exercising the right of redemption varies depending on state laws and the specific circumstances of the foreclosure. Often, this right only exists for a defined period following the foreclosure sale, after which the homeowner may lose the opportunity to redeem the property. In the case of REOs, which are properties that have been foreclosed and are now owned by the lender, redemption periods typically have specific expiration dates. Once that period passes, the former homeowner no longer has the right to reclaim the property, reinforcing the idea that timely action is critical. Understanding this aspect of the right of redemption is essential for homeowners facing foreclosure, as it influences their options and strategies for retaining their homes.