Redemption Flashcards
What is Redemption in equity?
Equitable redemption is universally recognized up
to the date of sale. At any time prior to the foreclosure sale debtor may try and redeem the land
What happens to redemption once a valid foreclosure has taken place?
The right to equitable redemption is gone
How is the right of equitable redemption exercised?
By paying off the missed payments or payment plus interest plus cost
What happens to redemption if the mortgage or note contained an acceleration clause?
An acceleration clause permits the mortgagee to declare the full balance due in the event of default. If the mortgage contains an acceleration clause The full balance plus accrued interest plus costs must be paid
May a debtor/mortgagor waive the right to redeem in the mortgage itself?
No, this is known as clogging (The equity of redemption, it is prohibited)
What is Statutory redemption?
Recognized in one-half the states, statutory redemption gives the debtor-mortgagor a statutory right to redeem for some fixed period after the foreclosure sale has occurred (typically six months to one year). Where recognized, statutory redemption applies After foreclosure (breathing space). The amount to be paid is usually The foreclosure sale price rather than the amount of the original debt
In most states, to recognize statutory redemption, the mortgagor will have the right to what?
To possess blackacre during the statutory period, that is what makes it so interesting
When a mortgagor redeems, the effect is to what?
Nullify the foreclosure sale:
The redeeming owner is restored to title, so long as he can restore during statutory title
