Also known as: redimit · redemptus · redemptio · redeem · redemption
Written by attorneys · grounded in primary & secondary sources — see below
The right of a debtor or mortgagor to regain ownership of property or collateral by satisfying the secured obligation before foreclosure or sale. This right arises when real property or personal property is pledged to secure a debt and permits the pledgor to reclaim full title upon payment.
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Rowan Russell borrows funds from Redwood Bank and executes a mortgage on his warehouse to secure repayment. After default, the bank begins foreclosure proceedings. Russell tenders the full amount due before the sale occurs. The tender satisfies the debt and restores Russell's unencumbered title to the warehouse.
Rhea Reynolds grants a security interest in her manufacturing equipment to a lender. After default the lender repossesses the equipment and schedules a sale. Reynolds tenders the full amount of the secured obligation plus expenses. The tender redeems the equipment and returns it to Reynolds free of the security interest.
Roland Rhodes grants a security interest in an automobile located in state Y while residing in state X. Both states maintain identical local rules governing a debtor's right of redemption. The court aggregates the contacts in X and Y and treats the transaction as though all contacts occurred in a single state for choice-of-law purposes on the redemption issue.
Raymond Ramos executes a mortgage on his commercial building in a title-theory jurisdiction. Legal title passes to the mortgagee while Ramos retains only the equity of redemption. Upon tender of the full debt before foreclosure, Ramos regains legal title. The equity of redemption is the sole interest Ramos holds until payment occurs.
Renee Rogers defaults on a mortgage secured by her retail property. The mortgagee conducts a valid foreclosure sale that terminates Rogers's equity of redemption. After the sale closes, Rogers no longer possesses any right to redeem the property by paying the original debt. The purchaser at the sale takes title free of Rogers's former interest.
Ralph Richardson's property is sold at a foreclosure sale for less than the full debt. State law grants Richardson a statutory period to redeem by paying the sale price plus interest and costs. Richardson exercises the right within the statutory window. The purchaser's title remains subject to Richardson's redemption right until the period expires.
Equity of redemption permits a mortgagor to pay the debt and reclaim the property before foreclosure sale occurs. Statutory redemption, available only in some states, permits redemption after the foreclosure sale by paying the sale price plus interest and costs within a statutory period. The two rights operate at different stages and are distinct.
Yes. Redemption under UCC § 9-623 requires the debtor or other authorized party to tender fulfillment of all obligations secured by the collateral plus the secured party's reasonable expenses. Tender must occur before the secured party has disposed of the collateral or entered into a contract for its disposition.
…him for so doing. Moreover, the principle on which defendant relies does not apply when the marriage in question is beyond redemption ( Glickman v. Collins (1975) 13 Cal.3d 852, 858-859 [120 Cal. Rptr. 76, 533 P.2d 204]); whether or not defendant's marriage to Betty was beyond redemption when defendant contracted with…
…evil or reckless hands it can cause races or types which are inimical to the dominant group to wither and disappear. There is no redemption
…the firm had considered, “among other things, the current market prices of the securities of both corporations, the high redemption
…might be. One need not think less of the First Amendment to sustain reasonable methods for allowing the average citizen to redeem
…by careless liars. The destruction that defamatory falsehood can bring is, to be sure, often beyond the capacity of the law to redeem
Under title theory the mortgagee holds legal title and the mortgagor possesses only the equity of redemption. Under lien theory the mortgagor retains legal title and the mortgage creates a lien. Intermediate theory blends both approaches. Each theory determines the precise scope of the redemption right and the procedures for exercising it.
The contacts are treated for choice-of-law purposes as if grouped in a single state. This aggregation applies when the states share identical local law rules on the debtor's right of redemption. The result simplifies analysis by eliminating conflicts that do not actually exist.
Foreclosure terminates the equity of redemption when the mortgagee completes the foreclosure process and obtains the property or its value. Judicial, power-of-sale, and strict foreclosure each end the right once the sale or decree becomes final. After termination the former mortgagor no longer may redeem by paying the original debt.