Of course the former owner can always buy his or her property back on the same terms and conditions you are offering to sell it to third parties.
The real question is, can the former owner force you to sell the property back to him or her for a price approximately equal to what he or she owed on the loan, rather than the full market value? The answer to this question depends on the state in which the property is located.
This right is generally called the right of redemption. Some states use that phrase to mean the right of a borrower to catch up his or her loan before foreclosure and stop the whole process. Other states use the expression to mean the borrower’s right to pay off the mortgage loan after the foreclosure court order, but before something called a law day. It can get a little confusing.
The details of the right of redemption also vary from state to state. In my state, for example, the borrower, and any creditors of the borrower, may redeem the property for up to one year after the foreclosure.
In other states the right of redemption can be as short as three months. The Colorado seventy-five-day right of redemption is being phased out as of January 1, 2008. The redemption price is the foreclosure purchase price, plus interest, and reimbursement for some expenses such as taxes and insurance.
If your state has a postforeclosure right of redemption, you can sometimes force a cancellation of those rights, or you can buy them from the former owner.