Minnesota
Foreclosure Laws
Minnesota
Foreclosure Laws:
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.
Minnesota
Foreclosure Laws: 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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