Question

The amount a debtor still owes on his or her mortgage can influence the length of the statutory redemption period after a foreclosure sale in Minnesota. Which of the following scenarios would likely result in a six-month redemption period?

A) The debtor owes less than 10% of the property's appraised value.
B) The debtor owes more than 50% of the property's appraised value.
C) The debtor owes 30% of the property's appraised value.
D) The debtor owes 20% of the property's appraised value.

Answer 1

In Minnesota, a six-month statutory redemption period is likely if the debtor owes more than 50% of the property's appraised value, as the law specifies this timeframe when more than two-thirds of the original principal amount is still due.

Step-by-step explanation:

The length of the statutory redemption period after a foreclosure sale in Minnesota is influenced by the amount still owed on the mortgage. For a six-month redemption period, the scenario most likely to result in this timeframe would be: B) The debtor owes more than 50% of the property's appraised value. This is because under Minnesota law, if the amount due at the time of the sale is less than two-thirds of the original principal amount of the mortgage, the redemption period is six months. However, if the amount the debtor owes is less than this threshold, the redemption period may extend up to 12 months.