foreclosure redemption rights
Foreclosure, mortgages??? Noob question?
Hi, I really do not know much about economics…. but I have a question.
Paperwork storm hits nation’s biggest bank <-- in this article recently, it says how
"Bank of America, the nation's largest bank, on Friday became the latest lender to put foreclosures on hold in 23 states because of concerns that court documents it submitted were improperly prepared.
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However, what exactly does a foreclosure on mortgage mean?
I looked it up and it says "termination of a mortgagor's equitable right of redemption"
What is redemption??? So it is going to terminate the right of the bank to receive interest from the mortgage or something??
“termination of a mortgagor’s equitable right of redemption” = ending the ” owner’s” rights to the property.
When someone takes out a mortgage they use the home as collateral. If they do not pay on that loan then the bank forecloses and and takes back the property. The “owner” loses his/her rights to the property (the right to occupy the property, the right to sell it, etc.)
“equitable right of redemption” = is the right to pay off the loan and own the property outright. That is why I use the term “owner” in quotes because while they have a mortgage on the property they technically don’t “own” the property (the bank does). The ” owner” has what is called equitable title.
