right of redemption

The right of redemption is a legal doctrine that, in certain circumstances, allows a mortgagor or debtor to reclaim property securing a debt. In the context of foreclosure, redemption generally takes two forms: 

The equitable right of redemption is a long-recognized principle derived from equity and English mortgage law. It generally permits a defaulting mortgagor to discharge the secured debt and prevent the loss of the mortgaged property before the foreclosure process has reached the point at which that right is extinguished. The precise deadline for exercising the right varies by jurisdiction and foreclosure procedure. An equitable right of redemption generally cannot be waived as part of the original mortgage transaction. In Peugh v. Davis, 96 U.S. 332 (1877), the U.S. Supreme Court recognized that the equity of redemption could not be waived or abandoned through a stipulation made at the time of the mortgage, even when it is incorporated into the mortgage agreement itself. However, courts may recognize a waiver made in good faith after default when it is supported by consideration independent of the original loan transaction. Whether such a waiver is enforceable depends on applicable state law and the circumstances of the agreement.

In contrast, the statutory right of redemption is created by statute and generally permits an eligible person to reclaim property after a foreclosure sale by satisfying the requirements established by the applicable statute. The amount required to redeem may include the foreclosure-sale price, interest, costs, and other specified amounts. The statutory right of redemption varies substantially by jurisdiction. While some states provide a post-sale redemption period, others do not provide a general statutory right of redemption after a foreclosure sale. Where a statutory right exists, the redemption period and procedural requirements depend on the applicable state law and may vary according to the type of foreclosure, the property involved, and other circumstances.

See e.g.: 26 CFR § 400.5-1 - Redemption by United States, NY Real Prop Actions L § 1352 (2025).

See also: Debtor and Creditor Law, State Property Laws, and Justia’s Foreclosure Law Center Homeowners' Legal Rights Before, During, and After Foreclosure.

[Last reviewed in August of 2026 by the Wex Definitions Team]

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