On the eve of the foreclosure sale, Lena Howard pays the full amount required to satisfy the default and stop the sale. Which right is Lena Howard exercising?
Correct Answer
C) Equity of redemption
Equity of redemption is correct because the facts match the borrower's right to stop a foreclosure by paying the debt and required costs before the foreclosure sale occurs. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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