Real Estate Tips & News

Right of redemption

Fundamental legal right of a borrower (mortgagor) to redeem the mortgaged property. The mortgagor can exercise this right [1] on or before the date of foreclosure, [2] after the foreclosure on payment of a penalty or, in some jurisdictions, [3] even after the foreclosure sale-by paying off in full the outstanding debt plus all charges and penalties. It is commonly an inviolable right which may not be restricted unduly by the courts. If a mortgage agreement does not specifically provide for redemption of the mortgage property it is, ipso facto, unenforceable in law. Also called equitable right of redemption.