Mortgage Foreclosures are legal actions taken to foreclose upon real estate, as opposed to personal property. These are covered by Minnesota Statutes Chapters 580 – 582.
Mortgage Foreclosure by Advertisement
This is the most common type of foreclosure action. It is usually based upon some default in the terms of the mortgage.
The attorney hired to foreclose a mortgage will prepare the appropriate notice of sale, and arrange for service and publication of the notice.
Any questions regarding a sale or arrangements to reinstate a mortgage should be directed to the attorney preparing the sale. Their telephone number is usually published with the Notice of Sale.
Mortgage Foreclosure by Action
These sales are conducted pursuant to a direct Order from a District Court Judge for the Sheriff to sell a specific parcel of real property.
The plaintiff's attorney will prepare the notice of sale, and arrange for service and publication of the notice. A posting in three public places (two in Minneapolis City Hall and one on the Public Service Level of the Hennepin County Government Center) is also required.
In both types of Mortgage Foreclosure Sales, the sale is conducted by the Sheriff, or his designee, in an open bidding process. Sales are conducted weekdays at the advertised time, in the Hennepin County Sheriff’s Office – Civil Unit, Room 30, Minneapolis City Hall, 350 South 5th Street, Minneapolis, MN 55415. The mortgage company’s or plaintiff’s attorney will bid first.
Following this bid, other bidders are given an opportunity to bid. A successful bidder must have cash or certified funds (payable to the Hennepin County Sheriff) available to pay the Sheriff’s Office at the time of the sale.
The successful bidder will receive a Sheriff’s Certificate of Sale that lists the name of the purchaser and the amount of the purchase. The Certificate of Sale is prepared by the attorney and includes documentation proving that all statutory requirements have been completed.
Mortgage foreclosure sales are subject to a redemption period, which is usually six months but can be as short as five weeks or as long as one year. The length of the redemption period is noted in the sale notice.
If you are facing foreclosure, please see the letter regarding equity stripping.
The Minnesota Housing Finance Agency offers information about mortgage foreclosures.