In real estate law, Equity of Redemption is the right of a borrower to reclaim property that is in foreclosure by paying the full amount owed, including principal, interest, and allowable costs. This right exists during the foreclosure process and, in some jurisdictions, for a specified period after the foreclosure sale.
The length of the redemption period is set by state law and may range from a few months to a year following the sale. Equity of redemption is intended to protect property owners by giving them a final opportunity to satisfy the debt and prevent permanent loss of the property.
