Is Your Default Foreclosable? Facts And Equity Determine The Answer.

There exist two major theories of mortgage law in the United States: the title theory, in which title to the collateral is transferred to the mortgagee until the debt secured by the mortgage has been satisfied; and the lien theory, where legal title to the property remains with the mortgagor and the mortgagee is granted a lien on the collateral until satisfaction of the debt secured by the mortgage.

In a mortgage foreclosure, one inalienable right of a mortgagor or borrower is their right of redemption or right to repay the debt secured by the mortgage and obtain a release of the lien of the mortgage against their property.

In New York, this right of redemption is generally available at any time after a default of the underlying obligation until the foreclosure auction has occurred. The inalienable nature of a mortgagor's right of redemption is further codified in the many court rulings that strike down waivers and other creative mechanisms that "clog" the