The right of a person to regain his or her property after foreclosure sale is called what?

• A. Reinstatement
• B. Redemption
• C. Reversion
• D. Rescission

Answer: (B)

Redemption is the right to reclaim property after a foreclosure sale by paying the full amount due (loan balance plus costs and interest) within a legally set redemption period. This gives the borrower a second chance to keep the home even after it has been sold at auction, as long as they can come up with the funds in time.

This differs from reinstatement, which is curing the loan default to stop foreclosure before the sale by bringing the loan current. Reversion refers to property returning to the grantor under certain conditions and isn’t about post-sale buyer rights. Rescission would undo a contract altogether and doesn’t describe post-foreclosure rights.