The Mortgage Foreclosure Process in Minnesota
The mortgage foreclosure process in Minnesota may be one of two types, depending on the terms of the mortgage loan and the titled owner of the property. Both types of foreclosures terminate the rights of the borrower or the owner of a secured property. Unlike many states, Minnesota does offer the borrower an extended amount of time to redeem foreclosed property.
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Deeds
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As part of the mortgage loan process, Minnesota borrowers may agree that the lender retain ownership of the property up until the time the mortgage loan is paid in full. The lender owns the property through a deed of trust. Other property loans in Minnesota may title the mortgaged property in the name of the borrower, but list the home as security for the mortgage loan.
Types
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The mortgage foreclosure process in Minnesota depends on the type of deed involved with the property. If the lender retains ownership through a deed of trust, the foreclosure process can be non-judicial, if the deed of trust contains a power of sale clause. Non-judicial foreclosures are also named foreclosures by advertisement. Other considerations for a non-judicial foreclosure in Minnesota include the absence of a current lawsuit designed to collect on the mortgage loan.
Judicial foreclosures are also possible in Minnesota if the property is titled in the name of the borrower and listed as security on a mortgage loan. Judicial foreclosures require court intervention and approval before the property can be sold at an auction.
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Notices
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Borrowers involved in a mortgage foreclosure in Minnesota must receive notice at least eight weeks in advance of a non-judicial homestead mortgage foreclosure. The sale dates, locations and other notice information stipulated in the power of sale clause must be followed. A notice of sale must be recorded in the county where the foreclosure property resides, no matter if the foreclosure is judicial or non-judicial. The recorded notice must list the names of the mortgage lender and the borrower, the mortgage date, a description of the property, the original amount of the mortgage loan, the amount of the default and the pertinent details of the foreclosure sale.
Sale
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Minnesota mortgage foreclosure sales are conducted in accordance with the information stipulated in the notice of sale. The sheriff of the county where the foreclosure property resides oversees the sale. The county sheriff must read an itemized statement outlining the amount due, as of the sale date. The mortgage lender files the statement. Foreclosed properties sell to the highest bidder in Minnesota; purchasers receive a certificate of sale.
Options
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The original borrowers listed on a mortgage foreclosure property sold at auction have up to one year to redeem the property. The original borrowers can do so by paying the total outstanding past due loan amount.
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