Equity of Redemption
The borrower's right to stop a foreclosure by paying the full amount owed before the foreclosure sale takes place.
The equitable right of redemption is the borrower's right to reclaim the property by paying the entire debt, plus costs, before the foreclosure sale occurs. In Texas, the borrower can cure the default or pay off the loan up until the trustee's sale, but once the non-judicial sale is held, that right ends.
Texas does not provide a statutory right to redeem an ordinary home loan after a deed-of-trust foreclosure sale. A limited statutory right of redemption does exist after a tax sale and for certain property-owners-association foreclosures.
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- Foreclosure
The process by which a lender forces the sale of property after default. Texas usually uses non-judicial foreclosure under a deed of trust.
- Non-Judicial Foreclosure
Foreclosure conducted by the trustee under a deed of trust's power of sale, without a court action, on the first Tuesday of the month in Texas.
- Deed of Trust
The Texas security instrument that pledges real property for a loan and lets a trustee sell it non-judicially if the borrower defaults.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.