A Minnesota homeowner defaults on her mortgage, and the lender completes a non-judicial foreclosure sale under Minn. Stat. Ch. 580 on March 15. The property is a standard residential home, and the borrower had paid more than one-third of the original loan balance before defaulting. How long does the homeowner have to exercise her statutory right of redemption?
Correct Answer
D) 6 months from the date of the foreclosure sale
Under Minn. Stat. Ch. 580, after a non-judicial foreclosure sale, the mortgagor has a statutory right of redemption for 6 months from the date of the foreclosure sale, provided that more than one-third of the original principal debt had been paid. Since the borrower here paid more than one-third, the standard 6-month redemption period applies. The period runs from the date of the sale, not from default.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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