Equity of Redemption is the right of the mortgagor, the borrower, to redeem, which means “take the property back” mortgaged property from a lender after commencement of foreclosure proceedings, to "cure" his/her default by making delinquent payments.

The borrower must pay all accumulated costs as well as the delinquency to keep the property, this is called a non-waivable equity of redemption. This right, which was created in the common law, is now governed by state laws on mortgage foreclosures and vary by state.

This right is based upon the equitable principle that it is only fair that a borrower have a final opportunity to keep his or her property even if he or she has failed to make payments on the mortgage, since the property is to be sold in foreclosure proceedings.

The equity of redemption must be exercised by a mortgagor within a certain time after having defaulted on an obligation. In most states, it exists only from the time of default to the time that foreclosure proceedings are commenced.

This right is not transferable.