A Michigan homeowner took out a mortgage for $280,000 to purchase a home in Kalamazoo. She later defaulted and the lender pursued foreclosure by advertisement. At the time the notice of foreclosure was published, the amount claimed to be due was $196,000. Assume the property is residential, does not exceed four units, and no shorter or agricultural redemption rule applies. What is two-thirds of the original loan, and which redemption period applies?
Correct Answer
A) Two-thirds is $186,667; the 6-month redemption period applies because $196,000 exceeds $186,667
Option A is correct. Two-thirds of $280,000 is $186,666.67, or $186,667 rounded. Because the $196,000 amount claimed due exceeds that threshold, the stated residential foreclosure falls under the six-month redemption rule in MCL 600.3240(8).
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Related Topics & Key Terms
Key Terms:
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