What does the statutory right of redemption allow a borrower to do?

The statutory right of redemption is a legal provision that allows a borrower to reclaim their property after a foreclosure by paying off the total debt owed. This right typically exists for a specific period, which can vary by state, allowing the borrower to recover their home even after it has been sold at a foreclosure auction. By exercising this right, borrowers can prevent the permanent loss of ownership of their property, provided they can meet the financial requirement of paying the outstanding debt.

This concept is crucial because it addresses borrowers' rights after foreclosure, offering a chance for redemption. The limitation of this provision is that it typically requires the borrower to come up with a significant amount of money, covering the total amount owed, including any additional costs associated with the foreclosure process.