Civil Process - Mortgage Foreclosures
Mortgage Foreclosures are legal actions taken to foreclose upon real estate, as opposed to personal property. These are covered by Minnesota Statutes Chapters 580 – 582.
All sales may be cancelled prior to the time of the sale.
Property being foreclosed upon is still in the hands of the property owners until it is sold. Therefore, you will not have the opportunity to inspect the property prior to the sale. The buyer acts at their own risk and is charged with determining for their self what liens or encumbrances, if any, will exist on the property; the property is sold as is.
Foreclosure Sale Procedure
The successful bidder will receive a Sheriff’s Certificate of Sale, which lists the name of the purchaser and the amount of the purchase. The Certificate of Sale is prepared by the attorney and includes documentation proving that all statutory requirements have been met.
All mortgage foreclosure sales are subject to a redemption period, usually 6 or 12 months. The length of the redemption period is noted in the sale notice.
The Minnesota Housing Finance Agency offers information about mortgage foreclosures.
|Mortgage Postponement Affidavit|
Mortgage Foreclosure by Advertisement
The attorney hired to conduct the foreclosure will prepare the appropriate Notice of Mortgage Foreclosure Sale, arrange for service and publication of the notice and have the Sheriff’s Office conduct the sale.
Some attorneys utilize the Sheriff’s Office to serve the notices while others only notify the Sheriff’s Office of the sale. Since attorneys often do not involve the Sheriff’s Office until the day of the sale, information may not be available if you call.
Any questions regarding a sale or arrangements to reinstate a mortgage should be directed to the attorney preparing the sale. Their telephone number is usually published with the Notice of Sale.
Mortgage Foreclosure by Action These sales are conducted pursuant to a direct Order from a District Court Judge for the Sheriff to sell a specific parcel of real property.
The notices are prepared by the plaintiff’s attorney, similar to the Mortgage Foreclosure by Advertisement, or may be prepared by the Sheriff. However, the Sheriff or a Deputy will sign the Notice of Sale. Service of the Notice of Sale is usually done by the Sheriff’s Office. A posting in three public places, as well as publication in the county’s legal newspapers is required by law.