A Maryland borrower signed a deed of trust in 2019. In 2024, the borrower defaults. The lender initiates a non-judicial trustee's sale. Before the sale is ratified by the court, the borrower wants to reclaim the property. Which legal right allows the borrower to stop the foreclosure by paying the full outstanding debt before court ratification of the sale?
Correct Answer
B) Equity of redemption, exercisable before the foreclosure sale is ratified by the court
In Maryland, the equity of redemption is the borrower's right to stop a foreclosure by paying the full outstanding loan balance (plus fees and costs) before the foreclosure sale is ratified by the circuit court. Maryland courts must ratify foreclosure sales, and during the period between the sale and ratification, the borrower may exercise this right. Once the sale is ratified, the equity of redemption is extinguished and the borrower loses the right to reclaim the property.
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