Equity Of Redemption Legal Meaning and Definition
Here is a simplified definition of the legal term Equity Of Redemption.
Equity of Redemption (noun): This is a legal term that refers to the right of a person (known as the mortgagor) who has borrowed money against their real estate property and is falling behind on their payments (a situation called default) to stop foreclosure. Foreclosure is when the borrower's real estate is sold by the lender in order to pay back the debt.
To use the Equity of Redemption, the borrower must pay all the missed payments, including any extra costs, to bring everything current. This can be done after foreclosure proceedings have already started. It allows the mortgagor to save their property from being sold.