right of redemption

  

Definition

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, statutory right of redemption.

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