| Which law provision governs foreclosure | | | | Minnesota, following conditions should |
| in Minnesota? | | | | be fulfilled. |
| The laws which govern are found in | | | | 4.No lawsuit to collect the on the |
| Chapter 580.01 et. seq.(Mortgages, | | | | mortgage is already underway |
| Foreclosure of Minnesota Statutes | | | | 5.mortgage and any assignments of the |
| (2004). | | | | mortgage to new lenders have been |
| What happens during Judicial Foreclosure | | | | recorded |
| in Minnesota? | | | | 6.a notice has been given eight (8) |
| It involves filing a law suite to obtain | | | | weeks before the foreclosure on a |
| a court order. This is done when no | | | | homestead |
| power of sale is present in mortgage | | | | If all of these conditions are fulfilled |
| deed. Once foreclosure is declared, | | | | then non-judicial foreclosure happens as |
| property is auctioned off to highest | | | | follows: |
| bidder. | | | | The notice of sale should have name of |
| What happens during Non-Judicial | | | | the borrower, lender, original loan |
| Foreclosure in Minnesota? | | | | amount, current loan amount with |
| Non-judicial foreclosure is conducted | | | | default, date of mortgage, the |
| only when power of sale clause exists in | | | | description of the property, time, date |
| deed of trust/mortgage. This clause | | | | and place of the sale. This notice |
| allows borrower pre-authorizes the sale | | | | should be recorded at the county office |
| of property to pay off the balance loan | | | | where property is located. The sale is |
| in the incidence of their default. In | | | | conducted by the sheriff; he must read |
| such cases power is given to lender to | | | | an itemized statement, which is filed by |
| sell the property by himself or his | | | | lender, of the amount due at the time of |
| representative who generally referred as | | | | the sale. The highest bidder receives |
| trustee. Guidelines for such procedure | | | | certificate of sale after winning. |
| are mentioned under "Guidelines for | | | | Lender can also go for deficiency |
| power of sale foreclosure". | | | | judgment with a restriction to the |
| Guidelines for power of sale foreclosure | | | | amount of fair market value of the |
| If the deed of trust/mortgage contains a | | | | property and unpaid balance of the loan. |
| power of sale clause with specified | | | | The borrower gets one year of redemption |
| time, place and terms of sale, then it | | | | period. |
| should be followed. | | | | This is legal information; it should not |
| To carry out Non-judicial foreclosure in | | | | be treated as legal advice. |