right of redemption

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In some states, mortgagors who default on their loans and lose their mortgaged property may recover their property by exercising a right of redemption. To exercise the right, mortgagors must pay their lenders the full amount of their unpaid debt, plus any additional default-related fees. Rights of redemption are governed by state law, which varies on whether and how long rights of redemption persist after foreclosure. See State Property Laws.

See Debtor and Creditor Law; Mortgage Law.