If I owed less on a foreclosed home than it was worth, is that considered “foreclosure redeemed”?

My home was foreclosed last year. The bank sent an IRS statement showing the home’s value was $54,000 and I only owed $52,000. One credit report lists this as “foreclosure redeemed” and 2 other agencies list it as “foreclosure” and give me a lower credit rating. Since I owed less than the value of the home, should it be listed as “foreclosure redeemed”?

Asked on August 20, 2012 under Real Estate Law, Georgia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The term "foreclosure redeemed" has nothing to do with the value of the home and the amount of the mortgage.  What it means is that the home owner/ borrower has begun to repay the debt to the lender and pays it in full before the foreclosure is final. Please seek help with this.  Good luck.


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