What does equitable right of redemption allow a borrower to do?

The equitable right of redemption is a legal principle that allows a borrower in default to reclaim their property before a foreclosure sale takes place. This right is significant because it gives the borrower a chance to stop the foreclosure process by paying the full amount of the lien, which typically includes the remaining loan balance, any accrued interest, and any associated fees.

The purpose of this right is to provide a borrower with a mechanism to recover their home and avoid the negative implications of foreclosure. It reflects the belief in fairness, enabling individuals to rectify their defaults within a specified timeframe before losing their property permanently.

In contrast, the other choices do not accurately describe this right. Sellers can sell the property before foreclosure, but this falls outside the scope of equitable rights. Similarly, changing loan terms after default or obtaining a mortgage at a reduced rate does not relate to redeeming the property or stopping foreclosure. These concepts involve different aspects of mortgage law and borrower rights. Thus, the focus here is on the borrower's ability to regain their property through full payment of their obligations prior to the foreclosure sale.