Which term describes the right of a borrower to reclaim their property before foreclosure?

The term that describes the right of a borrower to reclaim their property before foreclosure is known as "equity of redemption." This legal concept allows homeowners who have fallen behind on their mortgage payments to pay off their debt, including any fees and interest, in order to prevent the foreclosure process from proceeding and to retain ownership of their property.

The equity of redemption serves as a crucial consumer protection tool, providing borrowers a chance to mitigate financial difficulties and avoid losing their homes. Typically, the borrower must act within a specified timeframe, often defined by state law, to exercise this right.

While other terms may relate to foreclosure or a borrower's rights, they do not specifically capture the essence of reclaiming the property before the actual foreclosure process occurs. For instance, the redemption period usually refers to the time after foreclosure during which a borrower has the opportunity to redeem their property; the right of reinstatement is focused more on restoring a loan to good standing after default, potentially without losing the property altogether. Therefore, equity of redemption is the most accurate term for the situation described in the question.