Sec. 123. Redemption From The Mortgage

The mortgagor may redeem from the mortgage by applying to a court of equity offering to pay the debt with accrued interest and costs.

We have already seen how after the law day had passed the mortgagor was permitted by the courts of equity to get back his estate notwithstanding his breach of the condition, by paying the debt. This was called redemption and the mortgagor's right was known as his "equity of redemption." Ordinarily it is not necessary in these days for a mortgagor to apply to a court of equity for this remedy for the simple reason that if he can pay the debt the mortgagee is willing to receive it and to release the title without any court intervention. If, however, the mortgagee is unwilling to accord the mortgagor his rights then the mortgagor has the remedy named. A bill for redemption is accordingly brought where there is no bill for foreclosure. This is the way also that a mortgagor proceeds when he has given an absolute deed which he now claims to have been by way of mortgage.

This right of redemption from the mortgage must be strictly distinguished from the right of redemption from a sale in the foreclosure proceeding given by statute and which we consider in the next section.

Sec. 124. Redemption From Sale

Where the mortgagee forecloses by means of a judicial or non-judicial sale the mortgagor has the right of redeeming his property from the sale for a certain period of time by paying the debt with a rate of interest provided by law and perhaps a certain penalty.

There is a right of redemption given by the statute where there has been foreclosure. This redemption is entirely distinct from the one named in the last section because that is resorted to when the mortgagee will not recognize the mortgagor's equity of redemption. The redemption we now notice is a statutory one provided in cases of foreclosure whereby after the sale the mortgagor has a certain length of time in which to pay the debt and get back his property from the purchaser at the sale. Thus, suppose that A, mortgagee, forecloses against B, mortgagor, and C purchases at a sale decreed by the court. The sale brings three thousand dollars more than the debt and all costs, accrued interest, etc. This surplus is turned over to B. Now C obtains a certificate showing that he has purchased the property and that in course of time he will be entitled to a deed if B does not redeem. The statute, however, gives B twelve months, say, in which to redeem from the sale and B can avail himself of this right and thereby secure back his estate by paying to C all that C has paid out with interest thereupon.