I suggest that you consult with a real estate attorney after reading the answer to your question. First, if you purchase foreclosed property subject to the rights of redemption of a third party, if the third party redeems the foreclosure, you get back all that you paid for the property (down payment, improvements and the like) plus the allowed rate of return for interest in your state.Before you make the purchase, sit down with an attorney in the county where the property is located and get the full legal picture of what you may be getting into if you purchase the subject property where someone may have the right to redeem the purchase of it.