equity of redemption
- It's the opportunity foreclosed property owners have to buy back, or redeem, their property before it is permanently foreclosed
- It's the amount of ownership that a person has in a property that has been mortgaged, which is not yet completely foreclosed, providing them an opportunity to reclaim it
- The equity of redemption gave the homeowner a final chance to retain their property before the bank officially seized it.
- After failing to meet the loan payments, the owner could still use his equity of redemption to recover possession of his mortgaged property.
- The lender informed the borrowers about their equity of redemption in the mortgaged property when they defaulted on their monthly payments.