What event typically triggers the right of equitable redemption for the borrower?

The right of equitable redemption is a legal principle that allows borrowers to reclaim their property after defaulting on a mortgage loan by paying off the owed amount, including any costs and fees. This right typically comes into play at the moment of default. When a borrower fails to make the required payments on their mortgage, they enter into default status, which triggers the possibility for the borrower to utilize equitable redemption to avoid foreclosure and recover their property.

Understanding that equitable redemption is specifically tied to the event of default helps clarify its purpose — to provide a grace period for the borrower to rectify the situation and maintain their ownership of the property. Other options provided do not directly initiate the right of equitable redemption in the context of mortgages. For example, a lawsuit might involve various issues but does not specifically trigger equitable redemption. Changes in property ownership or the transfer of a mortgage to another lender also do not impact the right of the original borrower to redeem the property post-default.