What is the right of a mortgagor to regain property after a foreclosure sale called?

The right of a mortgagor to regain property after a foreclosure sale is referred to as the statutory right of redemption. This legal provision allows borrowers to reclaim their foreclosed property by paying off the outstanding debt, plus any additional costs, within a specific time frame set by state law. This time frame can vary significantly depending on jurisdiction, and it is designed to give mortgagors a chance to recover their property if they can raise the necessary funds, despite the foreclosure action.

In Nebraska, this right underscores the importance of consumer protection in real estate transactions, as it allows homeowners a second opportunity to retain ownership of their home after facing financial difficulties. This right demonstrates a fundamental principle in real estate law that recognizes the significant impact of foreclosure on individuals and families.

Other options do not convey the same legal meaning as the statutory right of redemption. The option to buy back is not typically used in the context of foreclosure and may refer to different contractual scenarios. Eminent domain refers to the government’s power to take private property for public use, which is unrelated to foreclosure. The right of possession, while relevant in discussing ownership and control of property, does not inherently include the process of recovering property post-foreclosure.