What is the term used for a borrower's right to reclaim property after foreclosure by paying the outstanding balance?

The term "statutory redemption" refers to the legal right of a borrower to reclaim their property after foreclosure by paying off the outstanding mortgage balance. This right varies by state, with some jurisdictions allowing a defined period during which the borrower can redeem the property. The statutory redemption period provides borrowers with a second chance to recover their property, promoting fairness and offering protection against the harsh outcomes of foreclosure.

In contrast, equitable redemption is a related but distinct concept that allows a borrower to redeem the property before the foreclosure sale occurs, primarily based on principles of fairness. It's essential to understand that while both terms relate to the redemption of property, statutory redemption is specifically associated with the post-foreclosure process, whereas equitable redemption applies before the foreclosure proceedings are finalized. The right of first refusal pertains to a different scenario in real estate, concerning a party's opportunity to purchase a property before the owner sells it to someone else. Thus, the correct answer emphasizes the legal recourse available to borrowers to recover their homes after the foreclosure has been executed.