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redeem > define

verb

  • Save from sins.
  • Restore the honor or worth of.
  • To turn in (vouchers or coupons) and receive something in exchange.
  • Exchange or buy back for money; under threat.
  • Pay off (loans or promissory notes.
  • Convert into cash; of commercial papers. .
by WordNet 3.0 © 2006 by Princeton University
by Webster's Revised Unabridged Dictionary

To bring mortgage payments up-to-date after the lender has begun default proceedings. Once a borrower (or other lien holder)' REDEEM's, the mortgage is back in good standing and the relationship continues as before the default.