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Mortgage Question


angels3go
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Is it legal in the State of Michigan to offer an "essay contest" in order to have one person win and have enough money from applicants to pay off the mortgage, giving the home to the awarded essay applicant?

This really isn't a credit question. It sounds like this is a contest. You'll need to check your state's laws concerning contests and sweepstakes. But in general, why would this be any different than a contest for a new car or a free washer/dryer?

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I don't know the law in MI, but I would say that this would likely NOT be legal in WI. This is different than a contest for a free car. That would be a free entry for promotional purposes and then a sweepstakes prize of a vehicle. There is no direct collection of money to join.

This looks more like a "for profit" lottery situation. Everyone pays to enter. Then one person "wins" the home. If you can't run numbers legally or run a private poker game, which you probably can't, then I don't think this would fly either.

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Again, you may be right. Aside from the highly regulated gaming industry, you usually have the "no purchase necessary" tag on all sweepstakes. Even if you have to buy a sandwich to get an entry, there is always a way to gain entry for free such as by mail or internet. are you going to allow that caveat?

I can't think of any entry situation where you have to pay money outside of the gaming industry. Can you give an example?

I think the rules are what they are for good reason. I'm one for maximum consumer choice, but this could get ugly real quick. How do you regulate this if everyone is essentially running private lotteries?

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