What term is used to indicate a benefit to the borrower regarding their mortgage payments in case of default?

The term "Equitable Redemption" refers to the right of a borrower to reclaim their property after it has been foreclosed on, by paying off the outstanding debt, including any fees and costs incurred in the foreclosure process. This concept is important in the context of mortgage loans and default because it provides a safeguard for the borrower against losing their property permanently due to defaulting on their mortgage payments.

In many jurisdictions, equitable redemption allows the borrower a specified period of time to make their payments and recover their property before the lender obtains full ownership. This can be seen as a benefit to the borrower, as it gives them an opportunity to rectify their financial situation and maintain their home.

The other terms mentioned relate to different concepts within property law. Equity refers to the owner's financial interest in the property, calculated as the difference between the property's market value and the amount owed on the mortgage. Encumbrance pertains to any claim or liability against a property that can affect ownership, such as liens. Enforceability deals with the validity and ability to enforce a contract or legal obligation. None of these alternatives specifically address borrower protections in the event of mortgage default as equitably as "Equitable Redemption" does.