In which situation does the right of redemption typically exist?

The right of redemption is a legal concept that allows a borrower to reclaim their property after it has been foreclosed upon, by paying off the owed amount within a certain timeframe. This right typically arises in the context of judicial foreclosure, where the court processes are involved.

In a judicial foreclosure, the property is auctioned following a court order, and the borrower is often granted a statutory period post-sale to redeem the property by paying the full amount due. This serves as a consumer protection measure, giving borrowers an opportunity to recover their property in instances of financial distress.

In contrast, non-judicial foreclosures do not provide the same redemption rights since they are processed outside of the court system, and generally, the redemption period is not applicable following such sales. Short sales are not foreclosures; they involve selling a property for less than the amount owed on the mortgage, with the lender's approval. Additionally, while bankruptcy proceedings can sometimes affect property rights and lead to redemption, the right of redemption as it pertains to recovering a property after foreclosure is specifically associated with judicial foreclosure scenarios.