finance
equitable right of redemption
The equitable right of redemption is a borrower's right to stop a foreclosure and keep the property by paying the full debt, plus interest and costs, before the foreclosure sale takes place. It exists in every state. Once the sale is complete, this right ends. Some states also give a statutory right of redemption, which lets the borrower reclaim the property for a period after the sale.
- Exam tip
- Equitable redemption is before the sale; statutory redemption is after the sale and exists only in some states.
- Example
- Two weeks before the foreclosure auction, a homeowner pays the $210,000 balance plus fees and redeems the property.
Related terms & state variants
Sources
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Last verified: 2026-10-23