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