- Who sends it
- The lender or servicer that plans to foreclose, before it records the notice of pendency
- What it starts
- Contact from a free counseling agency within about a week, and the run-up to a published notice of sale
- Do this first
- Call the agency named in the notice, or the Minnesota Homeownership Center at 651-659-9336 or 866-462-6466
What this notice is in Minnesota
Minnesota law requires a party foreclosing a mortgage to give you this notice before it records the notice of pendency (or, in a court foreclosure, the lis pendens) that formally starts the case (Minn. Stat. § 580.021, subd. 2). The wording is set by Minn. Stat. § 580.022, subd. 1. It is headed "PREFORECLOSURE NOTICE" and "Foreclosure Prevention Counseling," and it must be printed on colored paper that is a different color from any other paper sent with it.
It says: "We have given your contact information to an authorized foreclosure prevention counseling agency to contact you to help you prevent foreclosure." It then gives that agency's name, address and phone number. The agency must be a government agency or a nonprofit funded by Minnesota Housing or HUD, or approved by HUD, for foreclosure prevention counseling.
The rule covers homes with 1 to 4 units where the owner lives in one unit as a main home. It applies to foreclosure by advertisement and to foreclosure by court action (§ 580.021, subd. 1). The notice may come at the same time as a written notice of default.
What it does and does not mean
- It is not a sale notice. No sale date has been set, and the foreclosure has not been recorded yet.
- It is a warning that the next step, a Notice of Mortgage Foreclosure Sale, can follow.
- The counseling agency is free and, in the notice's own words, "not connected with us in any way."
- The law does not require the lender to agree to any particular fix (§ 580.021, subd. 4(c)). It does require the lender to name someone who can negotiate once a counselor is working with you.
The deadlines around this notice and how to count them
- The notice itself does not give you a deadline to answer.
- Within one week of sending it, the lender must give your name, address and phone number to the counseling agency (§ 580.021, subd. 3).
- When an agency agrees to help you, it sends the lender a form asking for contact information. The lender must send it back within 15 days of getting it, with the name and phone number of an agent who can discuss your loan and negotiate (§ 580.021, subd. 4).
- The notice of pendency can then be recorded, but no more than six months before the notice of sale is first published (§ 580.032, subd. 3). Publication then runs for six weeks before the sheriff's sale.
- Before the servicer refers your loan to a foreclosure attorney, it must tell you in writing about your loss mitigation options, and a complete application that is pending keeps it from making that referral (Minn. Stat. § 582.043). Send your application as early as you can.
See how long foreclosure takes in Minnesota for the full timeline.
What to do this week
- Call the agency named on the colored page. You do not have to wait for it to call you.
- If you cannot reach that agency, call the Minnesota Homeownership Center at 651-659-9336 or 866-462-6466, the number Minnesota's foreclosure notices list (Minn. Stat. § 580.041).
- Ask your servicer for a loss mitigation application. Send it complete, in a way you can prove, and keep copies.
- Ask the counselor to send the lender the contact form so the lender must name a person who can negotiate.
- Write down every date: when this notice came, when you applied, and every call.
- Read how to stop foreclosure in Minnesota for every option and its cutoff.
Free help in Minnesota and scam warnings
Foreclosure prevention advisors in this network do not charge you. For legal questions, legal aid offices are listed on LawHelpMN. The Minnesota foreclosure help page lists where to go at each stage.
- A Minnesota foreclosure consultant cannot take any pay until it has fully done everything it promised, and you can cancel its contract until midnight of the third business day after you sign (Minn. Stat. §§ 325N.03, 325N.04).
- The Attorney General warns about equity stripping, where someone talks you into signing your home over to them. Never sign a deed without advice from legal aid.
- Report a scam or a servicer problem to the Minnesota Attorney General at (651) 296-3353 or (800) 657-3787.
The rest of the Minnesota process
See how foreclosure works in Minnesota, the timeline, ways to stop it and free help in Minnesota, or read the national guide to this letter.
Common questions
Why is my Minnesota foreclosure notice on colored paper?
Minn. Stat. § 580.022 requires the Preforeclosure Notice to be printed on colored paper that differs from every other page sent with it, so it stands out. Later notices that come with the notice of sale are also on their own colored pages under § 580.041.
Did my lender have the right to give my phone number to a counseling agency?
Yes. Minn. Stat. § 580.021, subd. 3 requires the lender to send your name, address and phone number to an approved foreclosure prevention agency within one week of sending this notice, so the agency can offer you free help.
Does the lender have to work with my Minnesota housing counselor?
It must respond. Once the counselor sends the lender the request form, the lender has 15 days to name an agent who can discuss the loan and negotiate (Minn. Stat. § 580.021, subd. 4). It does not have to agree to a particular outcome.
How soon after this notice can my Minnesota home be sold?
Not right away. The notice of pendency must be recorded first, then the notice of sale is published for six weeks and served on you at least four weeks before the sale (Minn. Stat. §§ 580.032, 580.03). After the sale you usually have six months to redeem.
Other Minnesota letters
- Notice of Mortgage Foreclosure SaleThis is the notice that sets the date of the sheriff's sale in a Minnesota foreclosure by advertisement. It is published for six weeks and handed to whoever lives in the home at least four weeks before the sale. The move-out date it lists is the end of the redemption period after the sale, not a date to leave before the sale.
- Help For Homeowners in Foreclosure and What Happens After the Foreclosure SaleThese two colored pages come with the Minnesota notice of sale on an owner-occupied home. The first, Help For Homeowners in Foreclosure, gives the amount to catch up as of a set date and the sale date. The second, What Happens After the Foreclosure Sale, explains your right to redeem and warns about scams.
- Summons and complaint to reduce the redemption period to five weeks (abandoned property)Minnesota lets the foreclosing lender, the holder of the sheriff's certificate, or the city or county ask a court to cut your redemption period to five weeks by claiming the home is abandoned. If no one shows up to oppose it and there is evidence, the court enters the order. If you still live there or plan to redeem, go to the hearing.
- Sheriff's Certificate of SaleAt a Minnesota sheriff's sale, the sheriff gives the buyer a certificate of sale. It does not take your home right away. It lists the price paid, the interest rate and your redemption period, and only becomes the buyer's title if no one redeems. If the sale brought in $100 or more over what was owed, the sheriff also mails you a surplus notice.
- Eviction summons and complaint after the redemption periodIf no one redeems and you are still in the home after the redemption period, the buyer can file an eviction case in district court. The summons sets a hearing 7 to 14 days after it is issued. Only a court order can make you leave, and you can answer at that first hearing.
Sources
- Minn. Stat. § 580.021 (foreclosure prevention counseling)
- Minn. Stat. § 580.022 (Preforeclosure Notice forms)
- Minn. Stat. § 580.032 (notice of pendency)
- Minn. Stat. § 582.043 (loss mitigation; dual tracking)
- Minn. Stat. § 580.041 (foreclosure advice notice, with counseling phone numbers)
- Minnesota Attorney General: Facing Mortgage Foreclosure
- Minnesota Homeownership Center