Redemption
National Real Estate Exam glossary · Financing
Definition
The borrower's right to recover the property by paying what is owed. Equitable redemption is exercised before the foreclosure sale by paying the full debt plus costs; statutory redemption, where a state grants it, allows recovery for a set period after the sale.
Redemption in plain English
Redemption is a borrower's second chance to keep a home they've fallen behind on paying for. Think of it like a library book that's overdue and about to be sent to collections: if you rush in and pay everything you owe plus the late fees, you get to keep it. "Equitable redemption" is that chance BEFORE the home is sold off — pay the full debt and costs, and it's yours again. "Statutory redemption" is a bonus window some states give even AFTER the sale, letting you buy the home back within a set number of days.
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