What is the right of redemption in real estate?

The right of redemption in real estate specifically refers to the ability of a borrower to reclaim property that has been foreclosed upon. When a homeowner or property owner defaults on their mortgage or loan, the lender can initiate foreclosure proceedings. However, many jurisdictions provide the borrower with a period of time during which they can redeem or reclaim the property by paying off the outstanding debt, along with any applicable fees or costs. This process allows individuals facing foreclosure an opportunity to regain ownership of their property, emphasizing the importance of property rights and the support systems in place for borrowers.

The other options do not accurately describe the right of redemption in real estate. The negotiation of a lower purchase price pertains to the buyer's leverage in a transaction, while extending a lease relates to tenant rights. Modifying property plans relates to a developer's flexibility in design, but none of these involve the concept of reclaiming property after foreclosure, which is the essence of the right of redemption.