Minnesota Foreclosure Laws

In the State of Minnesota, foreclosure real estate proceedings are both judicial and non-judicial; that is, they are conducted through the court process and out-of-court process. Generally the foreclosure process in the State would take about four months, and this period is exclusive of the redemption period.

Pre-foreclosure Period

The lender shall initiate the process of foreclosure by issuing a notice of default to the borrower. If the borrower fails to respond or remit the default amount, the lender shall then files for a court action against the borrower. The foreclosure sale is scheduled once the court issues a ruling against the borrower.

However, majority of foreclosures in the State of Minnesota are handled out-of-court as most mortgages contain the power-of-sale clause, giving the rights to the lender to proceed with disposal of the property in sale if the borrower defaults. Most mortgages also require that the lender give a notice of default to the borrower in the event of any default before scheduling a foreclosure sale.

In both, judicial and non-judicial, foreclosure proceedings, the borrower has the option of halting the foreclosure at any time before the foreclosure sale by remitting the entire default amount, plus any applicable fees and costs.

Auction Notice

Once the necessary pre-foreclosure formalities are completed, the lender shall proceed with scheduling the sale and issuing a notice of sale. The notice of sale shall contain;

  • The names of the borrower, the owner and the lender
  • The principal loan amount
  • The date of mortgage
  • Recording Information
  • Amount in default
  • Complete legal description of the property
  • The time and location of the sale
  • The period of redemption permitted

The notice of the foreclosure sale shall be published in a local newspaper once a week for a period of not less than six weeks. The occupants of the property should also be given the necessary notice within period not less than four weeks prior to the scheduled foreclosure sale.

The foreclosure sale is conducted usually at the Sheriff's office, between the hours of 9:00 a.m. and sundown, by the County Sheriff or the Sheriff's Deputy. Any member of the public, including the lender, may place a bid for the sale. The sale shall be awarded to the highest bidder.

The winning bidder, or the lender, shall pay the entire bid amount in cash or by cashier's check. The scheduled sale may be postponed by the Sheriff by publishing a notice in the local newspaper in which the original sale notice was published.

The winning bidder is given a certificate of sale by the Sheriff, after the sale, in transfer of ownership of the property to the winning bidder. The winning bidder shall have the complete ownership and possession rights of the property after the completion of the redemption period.

In the State of Minnesota, the borrower is generally permitted a redemption period of six months. However, certain types of property also permit a period of twelve months. During the redemption period, the borrower can redeem the property by remitting the winning bid amount, along with costs and fees.

If you need more information about Minnesota foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.

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