RIGHT OF REDEMPTION VS.

EQUITY OF REDEMPTION

Right of Redemption is the right which is specifically granted by law to the mortgagor. Equity of
Redemption, however, is merely being recognized by law as there is no law covering the same.

Equity of Redemption is the right of the defendant mortgagor to extinguish and retain
ownership of the property by paying the amount fixed in the decision of the court within ninety
(90) days to one hundred twenty (120) days after entry of judgment or even after the sale but
prior to its confirmation. Right of Redemption, on the other hand, is the right granted to the
debtor-mortgagor, his successor in interest or any judicial creditor of said debtor-mortgagor or
any person having a lien in the property subsequent to its mortgagor deed of trust under which
the property is sold to redeem the property within one (1) year from registration of the
sheriffs certificate of sale.

In other words, Equity of Redemption is the right to extinguish the mortgage and retain
ownership of the property by paying the debt. The equity of redemption may be exercised even
after the foreclosure sale provided it is made before the sale is confirmed by order of the court.
Right of Redemption, however, is a right granted to a mortgagor to repurchase the property
even after the confirmation of the sale and even after the registration of the certificate of sale.