Timeline:
60 days
Redemption:
One year after sale
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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In Minnesota
, either the Non-Judicial or Judicial Foreclosure process may
be used when a borrower has defaulted on a loan.
The
Judicial Foreclosure process is used in the absence of a “power
of sale” clause in the original loan documents. The lender must
sue the borrower in court to obtain an order to foreclose on
the property.
The
Non-Judicial Foreclosure process may be used if the loan documents
contain a “power of sale” clause, authorizing the lender to
sell the property if the borrower defaults. Also, no lawsuit
must have been filed to collect the delinquent amount, and the
mortgage and any assignment of the mortgage to a new lender
must have been recorded. If the property is a homestead, the
notice of intent to foreclose must be given at least eight (8)
weeks prior to the foreclosure process being initiated. If the
“power of sale” clause specifies the time, place, and terms
of the sale, then those details must be adhered to. |
The
sale process in Minnesota begins with the recording of the notice
of sale with the county clerk. The notice must contain the borrower
and lender information, as well as the original amount of the
mortgage, amount that is delinquent, and the time, date, and
place the sale is to be held at.
For
six (6) consecutive weeks before the sale, the notice must be
published in a newspaper of general circulation in the county
in which the property is located. The notice must be served
to the borrower at least four (4) weeks prior to the sale.
The
county sheriff conducts the sale as a public auction. The sheriff
or a deputy must read aloud a statement filed by the lender
which includes an itemization of the amounts due. The high bidder
for the property receives a certificate of sale at the auction.
The
redemption period in Minnesota is up to one year after the sale.
The borrower must pay the delinquent amount plus costs in order
to redeem the property.
A deficiency
judgment may be pursued by the lender. The lender can sue the
borrower for the difference between the fair market value of
the home or the sale price and the balance of the loan.
Minnesota Foreclosure Law