Who has the right to reclaim a property before foreclosure due to mortgage default?

The right of Equitable Redemption allows the borrower to reclaim a property before foreclosure occurs due to mortgage default. This principle is rooted in the idea that a borrower should have the opportunity to correct their financial default by paying off the overdue amount, including all fees and costs associated with the default before the foreclosure is finalized.

During the period between default and the actual foreclosure sale, the borrower can typically pay what is owed to reinstate the loan and prevent the loss of the property. This right is an essential protection within the mortgage process, ensuring that borrowers have a chance to retain possession of their home and remedy any financial hardships they may be facing.

In the context of the other options, the lender typically does not reclaim the property until a formal foreclosure has taken place. A government entity may have interests in the property for tax or regulatory reasons but does not hold the right to reclaim it in the absence of legal action or other specific circumstances. Tenants occupying the property do not have a claim to reclaim the property itself; they may need to vacate if foreclosure proceedings are initiated against the homeowner.