How foreclosure works in Minnesota

The notices you will receive in Minnesota, in order

1. Preforeclosure Notice: Foreclosure Prevention Counseling

   Sent by the lender before it records the notice of pendency, usually after the federal 120-day wait

   This notice is printed on colored paper and names a nonprofit counseling agency that the lender has given your contact information to. It can come with a written notice of default. Call that agency or the Minnesota Homeownership Center right away; the help is free.

   Minn. Stat. §§ 580.021, 580.022

2. Written notice of your loss mitigation options

   Sent by the servicer before it refers your loan to a foreclosure attorney

   The servicer must tell you in writing which options, such as a modification, forbearance or repayment plan, apply to your loan. Send in a complete application quickly, because a pending application keeps the servicer from referring the loan to an attorney.

   Minn. Stat. § 582.043, subds. 5, 6

3. Notice of pendency

   Recorded by the foreclosing party with the county recorder, no more than 6 months before the first published notice

   This is a public filing that says a foreclosure has started. You may not get a copy in the mail. You can check for it at the county recorder or registrar of titles.

   Minn. Stat. § 580.032, subd. 3

4. Notice of mortgage foreclosure sale

   Published for 6 weeks; a copy is served on whoever lives in the home at least 4 weeks before the sale

   The notice lists the amount the lender says is due, the time and place of the sheriff's sale, and how long you will have to redeem. For an owner-occupied single-family home it also gives the date you must move out, at 11:59 p.m., if you do not reinstate or redeem.

   Minn. Stat. §§ 580.03, 580.04

5. Help For Homeowners in Foreclosure and What Happens After the Foreclosure Sale

   Delivered with the notice of sale; the first notice is repeated at least every 60 days until the sale

   These two notices come on their own colored pages. The first tells you the amount needed to reinstate as of a set date and the sale date, time and place. The second explains your right to redeem and warns about people who ask you to sign over your house.

   Minn. Stat. § 580.041

6. Sheriff's certificate of sale

   Given to the buyer at the sale and recorded within 20 days, or 10 days if the redemption period is five weeks

   The certificate shows the price paid, the interest rate and the time you have to redeem. If you do not redeem, it becomes the buyer's title when the redemption period ends. If the sale left $100 or more in surplus, the sheriff mails you a notice about it.

   Minn. Stat. §§ 580.12, 580.10, subd. 2

7. Eviction summons

   Only if you are still in the home after the redemption period ends

   The buyer can file an eviction case once the time to redeem has run out. The summons sets a court date 7 to 14 days after it is issued. Go to the hearing and call legal aid as soon as you get it.

   Minn. Stat. §§ 504B.285, subd. 1, 504B.321, subd. 1

The legal steps in Minnesota

1. Missed payments and the counseling notice

   Your servicer generally cannot start a foreclosure until you are more than 120 days behind. Before it records the foreclosure, the lender must send you a notice that free foreclosure prevention counseling is available, and it passes your contact details to a counseling agency within a week.

   Minn. Stat. § 580.021; 12 C.F.R. § 1024.41(f)

2. Loss mitigation review

   Before sending your loan to a foreclosure attorney, the servicer must tell you in writing what options exist and review you for all of them if you apply on time. It generally cannot move toward a sale while a complete application is pending.

   Minn. Stat. § 582.043

3. Notice of sale is published and served

   The notice of mortgage foreclosure sale is published for six weeks. If someone lives in the home, a copy must be served on them, the same way a summons is served, at least four weeks before the sale. A foreclosure advice notice comes with it and tells you the amount needed to reinstate.

   Minn. Stat. §§ 580.03, 580.041

4. Your options before the sale

   You can reinstate the loan by paying the past due amount and costs at any time before the sale. If the home is your homestead, you can also postpone the sale by recording a sworn affidavit at least 15 days before the sale date. The sale moves 5 months later, or 11 months if your redemption period would have been 12 months, but your redemption period becomes five weeks.

   Minn. Stat. §§ 580.30, 580.07

5. The sheriff's sale

   The county sheriff sells the home at a public auction. Once the sale happens the loan can no longer be reinstated. From then on, the only way to keep the home is to redeem it.

   Minn. Stat. ch. 580

6. The redemption period

   You usually have six months after the sale to redeem by paying the sale price plus interest and certain costs. You can stay in the home during this time. The period is 12 months in some cases and can be cut to five weeks if a court finds the home abandoned.

   Minn. Stat. §§ 580.23, 582.032

7. After redemption ends

   If no one redeems, the sheriff's sale buyer becomes the owner. The Minnesota courts note that a foreclosure can lead to an eviction case if the former owner does not move out.

Common questions in Minnesota