Understanding Right of Redemption
When an individual obtains a mortgage to buy a home, the home itself serves as the collateral for the loan. That means that the home owner forfeits ownership of the home if they default on their payments. Many mortgage notes include the right of foreclosure, which describes a lender’s ability to take possession of a property through a legal process called foreclosure and outlines the conditions under which the lender has the right to foreclose. (State and national laws also regulate the right of foreclosure.)
