I was brushing up on some real estate law this week and found a very interesting subject. Redemption laws in Minnesota in regards to foreclosures are hard to follow sometimes. The shortest redemption period is for a home that is found vacant the lender can foreclose and than take possession of the home in as quick as 5 weeks. Most homes with a homeowner still living in the home have a 6 month redemption period. However then we come up with another set of laws giving farms a 1 year redemption. Also anyone who has paid 30% of their mortgage down will also have a 1 year redemption period. Sounds confussing even when you understand it.
The redemption period starts the day the Sherrif's Sale occurs. At this sale the first mortgage typically purchases the home for the mortgage amount or maybe at a discount. The redemption period is time for the homeowner to try and redeem the home by purchasing it back from the Sherrif or selling the home and redeeming what they can of their credit. Once in a while a home will be in the redemption period and the homeowner will have equity - they need to sell to receive this equity or the lender will benefit not the homeowner.