A defaulted borrower's right to redeem property before a foreclosure is called the:

The equitable right of redemption refers to a defaulted borrower's ability to reclaim their property by paying off the defaulted loan amount, including any interest and fees, before the foreclosure process is completed. This right is rooted in the principle of fairness, allowing borrowers a chance to mitigate the consequences of their default prior to the property being sold at foreclosure.

This right typically exists in many jurisdictions and is often available up until the point a foreclosure sale takes place. It is essential in the mortgage lending context because it provides a second chance for the borrower to retain ownership of their home by fulfilling their financial obligations.

In contrast, the legal right of redemption, which is another concept sometimes confused with the equitable right, usually allows a borrower to regain ownership of the property after the foreclosure sale, given they pay the necessary amounts. The right of ownership and right of possession are not directly related to the redemption process but rather to more general property rights. Thus, the distinction lies in the timing of when the borrower can act: before or after the foreclosure sale takes place.