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