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Real Property • Security Interests in Real Estate
PROP#221
Legal Definition
A mortgagor may redeem their property by paying the full amount due at any time before the foreclosure sale. If an acceleration clause is present, they must pay the full balance of the note or mortgage. This right is not waivable in the mortgage.
Plain English Explanation
The purpose of the foreclosure sale is to quickly liquidate the property in order to pay off all or some of the debt owed to the lender based on the assumption that, under the circumstances, the mortgagor (the person who owes money to the lender) is unable or unwilling to pay what they owe. However, if the mortgagor can come up with the money before the foreclosure sale occurs, they have a right to pay in order to avoid the foreclosure happening.
What do they have to pay? That depends on the terms of the mortgage. In general, they may only need to pay whatever is owed under the normal, monthly payments (and any past due payments). In situations where there was a clause that required the whole debt to be paid upon default, then the mortgagor will have to figure out a way to pay it. May be hard (or impossible), but if they can manage to get the cash together, they have a right to not lose their property to a foreclosure sale.
What do they have to pay? That depends on the terms of the mortgage. In general, they may only need to pay whatever is owed under the normal, monthly payments (and any past due payments). In situations where there was a clause that required the whole debt to be paid upon default, then the mortgagor will have to figure out a way to pay it. May be hard (or impossible), but if they can manage to get the cash together, they have a right to not lose their property to a foreclosure sale.