What is the right to redeem property before the foreclosure sale called?

What is the right to redeem property before the foreclosure sale called?

• A. Equitable Redemption
• B. Legal Redemption
• C. Pre-Foreclosure Redemption
• D. Redemption Right

Answer: (A)

Equitable redemption is the right to stop a foreclosure by paying what’s due before the foreclosure sale. The term “equitable” reflects preserving the borrower’s ownership by curing the default before the sale occurs. If the borrower can pay the full amount owed, plus costs and interest, the foreclosure can be halted and ownership remains with the borrower. After the sale, some states offer a post-sale redemption period (often called statutory or legal redemption), but that is a different concept from the pre-sale right. Other terms like “pre-foreclosure redemption” aren’t the standard labels for this right, and “redemption right” is too generic to specify the timing.

Equitable redemption is the right to stop a foreclosure by paying what’s due before the foreclosure sale. The term “equitable” reflects preserving the borrower’s ownership by curing the default before the sale occurs. If the borrower can pay the full amount owed, plus costs and interest, the foreclosure can be halted and ownership remains with the borrower.

After the sale, some states offer a post-sale redemption period (often called statutory or legal redemption), but that is a different concept from the pre-sale right. Other terms like “pre-foreclosure redemption” aren’t the standard labels for this right, and “redemption right” is too generic to specify the timing.