When can a defaulting borrower redeem their property according to the statutory right of redemption?

The correct answer pertains to the concept of the statutory right of redemption, which allows a borrower to reclaim their foreclosed property after it has been sold at a sheriff's sale, but before the sale is confirmed. This right is typically established by state law and means that the borrower can pay the outstanding debt, along with any additional costs, to regain ownership of the property even after it has been sold in a foreclosure auction.

In many jurisdictions, this period allows a defaulting borrower the opportunity to redeem the mortgage and maintain their ownership, which is a critical consumer protection mechanism. This option reinforces the understanding that even after significant stages in the foreclosure process, there is still a chance for the borrower to rectify their financial situation.

The other choices do not accurately reflect the conditions under which a borrower can redeem their property. For instance, redeeming before the foreclosure process starts or during the loan application process is not feasible, as there is no indication of default needing to be resolved. Additionally, the notion of redeeming at any time before selling the property is misleading since the right to redeem typically comes into play post-sale, specifically after a sheriff's sale in the context of judicial foreclosure.