Equity of Redemption

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The equity of redemption is the right of a mortgagor (borrower) to redeem their property after a default on a mortgage loan. This right allows the borrower to get their property back by paying the outstanding loan balance and any accrued interest and fees.
The homeowner exercised their equity of redemption by paying off the loan in full before the foreclosure sale.
Finding a specific case example for the equity of redemption might be difficult, as it's a general legal concept.
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Frequently Asked Questions

If the borrower does not redeem the property by the foreclosure sale date, they lose their ownership interest in the property.

The equity of redemption is most commonly associated with mortgage loans. Other types of loans may have different rules regarding default and foreclosure.

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