Foreclosure: Redemption

Pursuant to Minnesota Statutes, most properties sold in a Mortgage Foreclosure action can be redeemed by the mortgagor. The published Notice of Mortgage Foreclosure Sale usually contains a paragraph indicating the length of the redemption period. In most cases, this is six months. Minnesota Statutes Chapters 580 – 582 regulate these redemptions. However, some Mortgage Foreclosures are subject to federal regulations, in which case there is no redemption period.

A Certificate of Redemption can be obtained from the Sheriff’s Office of the county in which the foreclosure occurred or from the Mortgagee (lending institution).

Redemption by Mortgagor (Recorded Fee Owner)

If a mortgagor wishes to obtain a Certificate of Redemption from the Sheriff’s Office, they must submit a written request along with the $250 Redemption Fee to 350 S 5th Street, Room 30, Mpls, MN 55415. It is important that you contact our Office at least 7-10 days prior to the anticipated redemption date. (See “downloadable forms” on the right for a sample redemption request form.)

The amount of the redemption is determined by the following:

  • Amount bid at the foreclosure sale.
  • Interest accruing from the date of sale to the date of redemption. (This is computed at the rate of interest on the mortgage as stated in the certificate of sale.)
  • Additional amounts paid by the purchaser at the foreclosure sale. (These amounts may include insurance, taxes, assessments, etc.) The purchaser must present an Affidavit of allowable costs to the Sheriff.

Payment of the redemption amount must be tendered to the Sheriff’s Office in prearranged electronic wires, cash, or certified funds made payable to the Hennepin County Sheriff’s Office. No other type of funds will be accepted. Delivery of funds and documents for redemption must be made at Room 30 Courthouse on business days between 9:00 am and 4:00 pm.

Redemption by Other Parties

After the normal redemption period has expired, redemptions may be made by persons other than the mortgagor. These may include persons or businesses who hold or have obtained junior liens:

  • Mechanic’s Lien filed against the property.
  • Judgment against the mortgagor.
  • Mortgage against the property other the foreclosed mortgage.
  • Other valid lien existing against the property.

A redemption by other parties has some specific legal requirements. It is recommended that persons interested in this type of redemption consult an attorney.

Minnesota Statutes 580.24 and 580.25 give the requirements for redemptions by junior lienholders.

Notice of Intention to Redeem filing fee: $100 per notice. Only one lien referenced per notice.

Redemption Fees

Fees for redemption are established by the Hennepin County Board following a public hearing.

  • Redemption Fee: $250.00
  • Redemption Documents Fee: $50.00
  • Document Review Fee: $150.00
  • Notice of Intent to Redeem filing fee: $100.00

See Redemption Fees for an explanation of fees.

The fees for redemption must be paid before a Certificate of Redemption is issued.