Minnesota Foreclosure Laws
Minnesota Foreclosure Laws
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Minnesota Foreclosure is Non-Judicial.
Non-Judicial Foreclosure:
A thirty-day demand letter must be sent on conventional loans prior to the commencement of a Minnesota foreclosure.
Minnesota Foreclosure Timeline
Day 1-17
Receive file, order title report, and send debt validation notice; Draft Power of Attorney and forward to client.
Day 17-39
Prepare Notice of Sale; Publication commences - six weeks.
Day 45-90
Deadline for Service of Notice of Sale; Sheriff issues Certificate of Sale.
Minnesota provides for non-judicial foreclosure when the mortgage deed contains a power of sale. A Power of Attorney authorizing an attorney to conduct the foreclosure along with a notice of pendency of the foreclosure must be filed of record prior to the commencement of foreclosure action. The Notice of Minnesota Foreclosure Sale must be published for six weeks. The Notice of Mortgage Foreclosure Sale must be served on the occupants of the mortgaged premises at least four weeks prior to the mortgage foreclosure sale. Minnesota foreclosure law states that all junior lien holders and parties with an interest in the property may file a request for Notice of Mortgage Foreclosure Proceeding. Notice is served on any requesting party by mail. Foreclosure sales are conducted by the Sheriff of the county where the property is located. The Sheriff issues a Certificate of Sale to the successful bidder. Outside bidder’s must have cash or certified funds sufficient to outbid the foreclosing lender.
A Minnesota foreclosure is subject to a statutory redemption period of six months. In a limited number of circumstances there is a twelve month redemption period. The twelve month period applies when the amount due as of the date of the Notice of Foreclosure Sale is less than 2/3 of the original principal amount; the mortgage premises exceed 10 acres in size with additional limitation; or the mortgage premises exceeds 40 acres in size. For mortgages executed after December 31, 1989 a court order may be obtained which reduces the redemption period to five weeks if the property has been abandoned.
During the redemption period an affidavit must be filed which details expenses advanced during the redemption period for taxes, insurance, and property preservation. The advances may not be collectable if the affidavit is not filed at least ten days prior to the expiration of redemption.
Judicial Foreclosure:
In order to obtain a deficiency judgment, the mortgage must be foreclosed by judicial action. Judicial foreclosure can also be used to cure title defects or if in a Minnesota Foreclosure by Advertisement the occupants of the property are avoiding service. This involves the filing and service of a summons and complaint and obtaining a judgment. After judgment has been entered, the matter is scheduled for a judgment and decree sale with the Sheriff. The Notice of Sheriff’s Sale under judgment and decree must be published and posted for six weeks. The difference between the amount of the debt and the bid will establish the deficiency. After completion of the sale, the court must confirm the sale results. Redemption will run from the date of confirmation. Collection of the deficiency can be commenced after confirmation of the sale.
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