What is the borrower's right to repay the loan and retain possession of the property even after a default called?

The borrower's right to repay the outstanding loan balance and retain possession of the property after defaulting is known as equity of redemption. This right allows borrowers to reclaim ownership of their property by paying off their mortgage debt even after a foreclosure process has been initiated.

In the context of mortgage law, equity of redemption recognizes the borrower's interest in the property and provides them with an opportunity to recover from a default situation. This legal principle seeks to ensure fairness and gives borrowers a second chance to remedy their default, thereby maintaining their ownership of the property.

Other options, while related to mortgage processes, do not accurately describe this specific right. For instance, foreclosure generally refers to the lender's process to take possession of the property when the borrower defaults, but it does not encompass the borrower's right to redeem the property. The right of retention and possessory interest do not fit this specific scenario as they pertain to different aspects of property rights and ownership. Understanding equity of redemption is crucial for both lenders and borrowers in navigating mortgage agreements and default situations.