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Define Equity of Redemption in Real Estate

Equity of Redemption: 

Equity of redemption is the right of a mortgagor (homeowner who has a mortgage) to pay off their debt and reclaim full ownership of their property before it's sold in a foreclosure by the mortgagee (lender). It gives borrowers a chance to make things right and save their home, even if they've missed some mortgage payments or defaulted on their loan.

Example: 

For example, Jane, the mortgagor, falls behind on her mortgage payments, and the mortgagee (the bank) starts the foreclosure process. Before the house is sold at auction, Jane receives a financial windfall and can now pay off her entire mortgage, including any penalties and fees. With the equity of redemption, Jane can pay off her debt to the mortgagee and stop the foreclosure, keeping her house.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

In the land of homes and loans, where some may stumble,
The equity of redemption helps troubles to crumble.
It's the mortgagor's right, to pay off their debt,
And keep their dear home, with no further fret.

Poor Jane fell behind, the mortgagee to pay,
The bank started foreclosure, to take her home away.
But fortune arrived, with cash to extend,
And the equity of redemption, her home to defend.

She paid off the mortgagee, and fees all around,
Stopped the foreclosure, and stood her ground.
With the equity of redemption, a chance to make right,
A mortgagor's lifeline, in their financial plight.