A Minnesota real estate licensee is advising a client who just purchased a property at a foreclosure sale under Ch. 580 on October 1. The original mortgagor had paid 40% of the original loan principal before defaulting. The licensee wants to advise the buyer about when the property will be completely free of the mortgagor's redemption rights. When does the mortgagor's statutory redemption period expire?
Correct Answer
A) April 1 of the following year (6 months from the foreclosure sale date)
Since the mortgagor paid 40% of the original principal (more than one-third), the standard 6-month redemption period under Minn. Stat. § 580.23 applies. The foreclosure sale occurred on October 1, so 6 months later is April 1 of the following year. The mortgagor's redemption period expires on April 1. Note that junior lienholders may then have additional sequential redemption windows after that date, but the mortgagor's period ends on April 1.
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