What term is used to describe the process of regaining property after defaulting on a mortgage?

The term used to describe the process of regaining property after defaulting on a mortgage is "redemption." Redemption allows a borrower who has defaulted on their mortgage to reclaim their property, typically by paying off the overdue loan amount, including any penalties and fees, before the property is sold at a foreclosure sale. This right is important as it provides borrowers a chance to retain ownership of their property, even after falling behind on their mortgage payments.

Reinstatement, while it sounds similar, refers specifically to bringing a mortgage loan back into good standing by paying the missed payments and any associated costs without necessarily regaining possession of the property if a foreclosure is already in process. Repossession often involves a lender taking back property, but it typically does not apply to the borrower's efforts to reclaim their property. Liquidation refers to selling off assets, which is not directly related to the process of regaining property after a default.