Lenders may foreclose on "Deeds of Trust" or "Mortgages in default", using either a Judicial or Non-Judicial foreclosure process. Most commonly used in Foreclosure in Minnesota are Mortgages and the Non-Judicial, or Foreclosure by Advertisement.
Judicial: A Judicial foreclosure is known as "Foreclosure by Action." In the case of a judicial foreclosure, the lender must file a court action (known as a Lis Pendens) against the borrower (homeowner), if the homeowner does not respond to or challenge the Lis Pendens, then the court can rule against the homeowner and schedule a foreclosure sale of their property. This method of foreclosure in Minnesota is not the most common as it can take as long as two years for the lender to repossess the property.
Non-Judicial: A non-judicial foreclosure, otherwise known as "Foreclosure by Advertisement," occurs when a homeowner's mortgage contains a Power of Sale clause. This clause allows the lender to pursue a foreclosure sale of the mortgaged property without having to consult with the court. The lender is required to serve the foreclosure papers to the homeowner in person, not in the mail. Papers are usually served by the Sheriff department of the county where the property is located. Also, the Lender must advertise in Minnesota a "Foreclosure Sale", also known as the "Sheriff Sale," in Minnesota community newspaper for four weeks. The process from where the Lis Pendens is filed to when the Sheriff Sale takes place, is generally within in six weeks.
Redemption Period
Minnesota has a statutory six month redemption period for which the homeowner can redeem the property by paying off all lenders in full plus fees. This only applies for most Non-Judicial foreclosures. There are some exceptions. A Short Sale is still possible to do while in the Redemption period.
Typical Foreclosure Timelines in Minnesota
When you miss your first mortgage payment by one day, you may be involved in the foreclosure process. You need to act quickly, as the process seems to develop a life of it's own without your input. Yes, it may seem easier to just let things go, but things will not get easier for you in the long run. Recent statistics indicate that 50% of all home loans are placed into a foreclosure process without any personal contact being made by a borrower. You should know the process in order to prevent it.
The diagram below, provided by the Minnesota Home Ownership Center, shows an approximate Foreclosure Time line and what happens at each stage for the State of MN. This time line always varies from State to State. If you don't live in Minnesota, please check your state laws.
Short Sale Mitigation Services, Inc.
9100 W. Bloomington Fwy., Suite 103
Bloomington, MN 55431
Phone: 952-884-6111
Fax: 952-960-2467
Email: steven@mnshortsaleinfo.com
Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.
