Question:

What is mortgage foreclosure redemption?

Answer:

Mortgage foreclosure redemption is the right of the borrower to reinstate their mortgage in case he's become delinquent on payments. Although lenders are usually flexible and willing to assist the borrower to retain their property, some lenders would employ predatory lending practices and would knowingly extend a loan that the homebuyer will have difficulties paying.

Then, when a default occurs, such a lender will often insist on enforcing the acceleration clause, thoughtfully slipped in the contract, knowing that it is legal to require paying the debt in full to prevent mortgage foreclosure.

There are states that have enacted the right of foreclosure redemption for borrowers - a period during which the borrower has the right to become current with their mortgage, paying all outstanding payments plus late fees and foreclosure fees. However, many borrowers simply do not know they have this mortgage redemption option and end up going through the whole humiliating process of public foreclosure.

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Common misspellings: mortage and morgage