Sandra is a real estate licensee in Minnesota helping a buyer who wants to purchase a property currently in the redemption period after a Chapter 580 non-judicial foreclosure sale. The foreclosure sale occurred on January 15, and the standard 6-month redemption period applies. The buyer wants to close on July 20 of the same year. Which of the following statements is most accurate regarding this transaction?
Correct Answer
A) The buyer can close on July 20 because the redemption period expired on July 15, giving the purchaser clear title
The standard 6-month redemption period under Minn. Stat. § 580.23 runs from the date of the foreclosure sale. Starting from January 15, the redemption period expires on July 15. After July 15, the mortgagor's redemption rights have expired (assuming no junior lienholder redemptions extended the period), and the foreclosure sale purchaser has clear, marketable title. A closing on July 20 would be after the redemption period has ended.
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