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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.
Related Concepts
How do states treat a mortgage without a note?
How do states treat a note without a mortgage?
How is a mortgage's priority determined?
How may a party be a holder in due course of a note?
In lieu of foreclosure, what do many installment contracts prefer and how do courts address this alternative?
Under which theories may a mortgagee take possession of a property and begin receiving rents before foreclosure?
What are the 5 types of security interests in real estate?
What are the benefits of the holder in due course status?
What are the limitations of a junior interest?
What are the methods of transferring a note?
What interests does a foreclosure destroy?
What is a deficiency judgment?
What is a due on sales clause?
What is a foreclosure?
What is an installment land contracts?
What is a receivership?
What is a statutory redemption?
What is the distribution order of proceeds from a foreclosure?
What is the result of a grantee assuming the mortgage?
What liabilities are associated with a mortgaged property that is transferred to another party?
What occurs in intermediate theory states?
What occurs in lien theory states?
What occurs in title theory states?
What results from a party purchasing a foreclosed property subject to a senior interest?
What security interests exist under a absolute deed?
What security interests exist under a deed of trust?
What security interests exist under a installment land contract?
What security interests exist under a mortgage?
What security interests exist under a sale-leaseback?
Who may transfer their interest in a mortgage?
