Minnesota Foreclosure Process

Here’s a video provided by the Minnesota Association of REALTORS® that offers a succinct explanation of the Minnesota foreclosure process. The video was intended for REALTORS,® but would also be helpful for buyers and home owners who have defaulted on their mortgages. Many homeowners do not have a general knowledge of the Minnesota foreclosure process. Please note that this article is for information purposes only. This should not be construed as legal advice. Consult a real estate attorney if you want to know how this information applies to your particular association.

Steps in the Minnesota Foreclosure Process

1. Notice of Sale. This marks the beginning of the redemption period. The bank or mortgage company (mortagee) must provide six weeks of published notice of sale (sheriff’s sale.) This means six weeks of advertising in the local newspaper. The person who is in possession of the home is served notice as a Summons for Civil Action.
2. Sale. Any surplus realized from the sale of the property (after loan payoff and legal fees) must be paid to the mortgagor (property owner.)
3. Redemption Period after Sale. The most commonly used period is the six month redemption period. This means that the mortgagor has six months to pay off the entire loan amount and absorb legal expenses incurred by the mortgagee, in order to retain the property. If not, the mortgagee takes possession of the property. A five week redemption period is used if the seller has abandoned the property. A twelve month redemption period is primarily utilized for agricultural property. A two month redemption period is used if the bank and the property owner have reached some sort of agreement, and want to speed up the mortgage foreclosure process.

For more detailed information, download this pdf fact sheet provided by the Minnesota Association of REALTORS®.

Possibly related posts:

1. Minnesota Luxury Home Foreclosures
2. Important Questions for Your Minnesota Town Home HOA.