The right of the mortgagor to reclaim
clear title to the property upon full
repayment of the debt. This right is granted
to mortgagors but is extinguishable under
foreclosure.
Example of Equity of Redemption
A Buyeracquires a property at a purchase
price of $150,000. For ten years, he makes
regular payments of $1,206.41, principal and
interest, on an 8% mortgage in the amount of
$100,000 amortized over ten years. Upon
completion of 120 payments,
the Buyer has
retired the debt. A discharge of the
mortgage is prepared and registered on the
title to the property and Jones, as
mortgagor, exercises his equity of
redemption and reclaims clear title to the
property.
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