Which term describes the mortgagor's right to regain clear title by paying the debt before foreclosure?

• A. Power of sale
• B. Lien priority
• C. Acceleration
• D. Equity of redemption

Answer: (D)

Equity of redemption is the mortgagor’s right to regain clear title by paying the debt in full before the foreclosure sale. When a borrower defaults, this right lets the borrower cure the default—paying the owed principal, interest, and costs—so the loan is reinstated and the property remains with the borrower. It serves as a last chance to avoid losing the home by satisfying the debt.

Power of sale is a foreclosure method that lets the lender sell the property without court action to recover the debt. Acceleration is a clause that makes the entire loan balance due immediately after a default. Lien priority refers to the order in which different liens are paid from the sale proceeds, not to the borrower’s right to reclaim title.