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Minnesota Foreclosure Law
Both in-court and out-of-court foreclosure proceedings are
used in Minnesota. The ideal timeline for a Minnesota
foreclosure is approximately four months, not including the
redemption period.
Pre-foreclosure Period
In Minnesota, a court foreclosure begins when a lender
notifies the borrower of the default. The lender then files a
court action against the borrower. If the court rules against
the borrower, a sale is scheduled. The majority of Minnesota
foreclosures are handled out of court through a power-of-sale
clause contained in the mortgage. Under most mortgages, a lender
must mail a default notice to the borrower before scheduling the
sale. With both types of foreclosure proceedings, the borrower
can stop the foreclosure any time before the foreclosure sale by
paying the default amount, plus fees and allowable costs.
Notice of Sale / Auction
The notice must include the borrower, owner, and lender
names; the original loan amount; the mortgage date; recording
information; the default amount due; a property description; the
time and location of the sale; and the redemption period. The
notice must be published for six weeks, and the occupants of the
property must be given the notice in person at least four weeks
prior to the sale. The county sheriff or sheriff's deputy
conducts the foreclosure sale between 9:00 a.m. and sundown at a
public place, usually the sheriff's office. Anyone may bid at
the sale, and the property is sold to the winning bidder. If not
the lender, the winning bidder must be prepared to pay the full
amount in cash or cashier's check. The sheriff may postpone the
sale by publishing a notice in the newspaper where the original
notice of sale was published. After the sale, the sheriff gives
a certificate of sale to the winning bidder. The certificate of
sale effectively transfers ownership and possession rights to
the winning bidder after the redemption period. In Minnesota, a
borrower usually has a six-month redemption period, but some
property types and mortgages allow for a 12-month redemption
period. During this time, the borrower can redeem the property
by paying the total amount of the bid plus interest and any
applicable costs.
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