Equitable redemption
National Real Estate Exam glossary · Financing
Definition
The borrower's right to cure a default and reclaim the property by paying the full debt plus costs before the foreclosure sale takes place. The parallel right to redeem after the sale, where it exists by statute, is statutory redemption.
Equitable redemption in plain English
Imagine you're behind on car payments and the bank is about to sell your car to get its money back. Equitable redemption is your last-chance window BEFORE that sale: if you scrape together the full amount you owe plus any costs, you get to keep your property and cancel the whole thing. 'Redemption' just means buying your way back out of trouble, and 'cure a default' means fixing the missed payments. Some states give a second window AFTER the sale too (called statutory redemption), but that only exists where a law specifically grants it.
Learn these first
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide