Equity of Redemption EH-qui-tee of re-demp-shun The equity of redemption is the right of a mortgagor (borrower) to redeem their property after a default on a mortgage loan. This right allows the borrower to get their property back by paying the outstanding loan balance and any accrued interest and fees. The homeowner exercised their equity of redemption by paying off the loan in full before the foreclosure sale. Finding a specific case example for the equity of redemption might be difficult, as it's a general legal concept. ← Back to BrowseNext Term →