| 1. How is a mortgage foreclosed in Minnesota? | | | | mortgage will be foreclosed by sale by providing |
| In Minnesota there are essentially two ways that | | | | six weeks published notice in a legal newspaper. |
| a mortgage can be foreclosed. The first way to | | | | Additionally, this notice must be served personally |
| foreclose is through the process of foreclosure by | | | | on the occupant of the property at least four |
| action. In this process, the mortgage holder files a | | | | weeks before the sale. The notice must contain |
| lawsuit in district court against the homeowner | | | | the date of mortgage, when and where recorded |
| and any others claiming an interest in the | | | | or registered, the amount due on the mortgage, |
| property. The matter will proceed with the timing | | | | the time and place of sale, and time allowed for |
| of a normal lawsuit. If successful, the court will | | | | the property owner to redeem after the sale |
| enter judgment of an amount due with costs and | | | | among other things. |
| disbursements and order the sale of the property | | | | 4. What happens at a sale? |
| by the sheriff in order to satisfy this judgment. | | | | Essentially, the sheriff or deputy auctions the |
| The sheriff will conduct a "sheriff's sale" described | | | | property being foreclosed to the highest bidder. |
| below. | | | | The sheriff or deputy will deliver to the purchaser |
| Foreclosure by Advertisement. The second and | | | | (usually the mortgage holder) a Certificate of Sale, |
| most common way for a mortgagee to foreclose | | | | which will be recorded within twenty days after |
| on a mortgage on Minnesota property is through | | | | the sale and operates as a conveyance of the |
| the process referred to as foreclosure by | | | | foreclosed property after the property owner's |
| advertisement. Essentially, foreclosure by | | | | redemption period expires. |
| advertisement allows the mortgagee to publish in | | | | 5. May the foreclosed property owner regain title |
| a legal newspaper that the mortgage is in default | | | | to the property after the sale? |
| and that a sale of the property subject to the | | | | Yes. In most cases, the foreclosed property |
| mortgage will be held on a specific date. If the | | | | owner has six months to redeem the foreclosed |
| property owner fails to cure the default before | | | | property from the purchaser at the sale. To |
| the sale, the sheriff will conduct a "sheriff's sale" | | | | exercise their right to redeem the property, the |
| described below. | | | | foreclosed property owner must pay the |
| 2. When is mortgage foreclosure by | | | | purchaser the amount of the sale plus interest |
| advertisement available? | | | | from the time of the sale. In some instances, this |
| A mortgagee may foreclose through the | | | | redemption period will extend up to one year |
| advertisement process if the mortgage contains a | | | | after the sale of the property has occurred. |
| permission to foreclose by advertisement (most | | | | Usually this redemption is completed by refinancing |
| mortgages do) and there is a default in a condition | | | | the property or by selling the property within the |
| of the mortgage. Additionally, the mortgage must | | | | redemption period. |
| have been recorded or duly registered. (Most are.) | | | | 6. Does the property owner have the ability to |
| 3. What notice must be provided in order to | | | | reinstate the defaulted mortgage prior to the |
| foreclose by advertisement? | | | | foreclosure sale? |
| The mortgage holder must publish notice that the | | | | |