Equity of Redemption
Definition - What does Equity of Redemption mean?
Equity of redemption grants a mortgagor who still owes on a loan or a debt against real property the ability to prevent a foreclosure by paying the amount due on the mortgage or loan, the interest, and other accumulated, associated costs.
Equity of redemption may apply after foreclosure proceedings have begun.
Justipedia explains Equity of Redemption
An equity of redemption is a very valuable interest because it gives the mortgagor the right to pay off a mortgage debt until the moment that a decree of foreclosure is issued. In other words, an equity of redemption survives default, so the right is the same before and after default as long as the foreclosure has not been finalized and the property sold.
Equity of redemption exists for the mortgagor and for every other party possessing an interest in the mortgaged premises, or legal or equitable lien upon the mortgaged premises. Equity of redemption may not be stripped from the mortgagor or others with an interest in, or with legal or equitable claim, upon the mortgaged premises without their consent or due process of law.