State of Minnesota Foreclosure Law Summary

Which law provision governs foreclosure inTo carry out Non-judicial foreclosure in Minnesota,
Minnesota?following conditions should be fulfilled.
The laws which govern are found in Chapter4.No lawsuit to collect the on the mortgage is
580.01 et. seq.(Mortgages, Foreclosure ofalready underway
Minnesota Statutes (2004).5.mortgage and any assignments of the mortgage
What happens during Judicial Foreclosure into new lenders have been recorded
Minnesota?6.a notice has been given eight (8) weeks before
It involves filing a law suite to obtain a courtthe foreclosure on a homestead
order. This is done when no power of sale isIf all of these conditions are fulfilled then
present in mortgage/deed. Once foreclosure isnon-judicial foreclosure happens as follows:
declared, property is auctioned off to highestThe notice of sale should have name of the
bidder.borrower, lender, original loan amount, current loan
What happens during Non-Judicial Foreclosure inamount with default, date of mortgage, the
Minnesota?description of the property, time, date and place
Non-judicial foreclosure is conducted only whenof the sale. This notice should be recorded at the
power of sale clause exists in deed of trustcounty office where property is located. The sale
mortgage. This clause allows borroweris conducted by the sheriff; he must read an
pre-authorizes the sale of property to pay off theitemized statement, which is filed by lender, of
balance loan in the incidence of their default. Inthe amount due at the time of the sale. The
such cases power is given to lender to sell thehighest bidder receives certificate of sale after
property by himself or his representative whowinning. Lender can also go for deficiency
generally referred as trustee. Guidelines for suchjudgment with a restriction to the amount of fair
procedure are mentioned under "Guidelines formarket value of the property and unpaid balance
power of sale foreclosure".of the loan. The borrower gets one year of
Guidelines for power of sale foreclosureredemption period.
If the deed of trust/mortgage contains a powerThis is legal information; it should not be treated
of sale clause with specified time, place and termsas legal advice.
of sale, then it should be followed.