Final answer:
The right of an owner to reclaim foreclosed property is known as the right of redemption, allowing payment of the owed amount and additional costs within a certain period.
Step-by-step explanation:
The right of an owner to recover foreclosed property is known as the right of redemption. This legal right allows former homeowners to reclaim their property by paying off the owed amount, including additional costs, within a specific period after the foreclosure sale. The duration of this redemption period and the specific conditions can vary depending on the state's laws. The right of redemption is a clear example of an instanced where property rights are defined, as emphasized by economist Ronald Coase, who stressed the importance of well-defined property rights for resolving disputes and ensuring responsibility.