Mortgages

Question 2

Equitable right of redemption

Answer 2

Allows the owner to avoid foreclosure by paying off their mortgage and any interest in full prior to foreclosure. This is always available as a remedy.

Question 3

Statutory right of redemption

Answer 3

This allows a debtor to reclaim their property after it is sold in foreclosure by paying the foreclosure sale price to the party that bought the property. This is only available if permitted in statute, and is only available during the time after foreclosure indicated in the statute.

Question 4

deed in lieu of foreclosure

Answer 4

This gives the property to the mortgagee directly and avoids a foreclosure sale. However, the mortgagee takes the property with its junior interests.

If the mortgagee does not reserve the right to foreclosure, then the mortgage owed to them is extinguished and only the junior mortgages (if any) remain.