Understanding Foreclosure in Minnesota

Understanding Foreclosure in Minnesota: A Simplified Guide

Foreclosure in Minnesota is a multifaceted process that spans several months. It's crucial for homebuyers to grasp that foreclosure involves distinct stages. This guide breaks down the foreclosure process into three main phases for easier understanding.

1. Pre-foreclosure Period

In Minnesota, the pre-foreclosure phase commences when a lender issues a notice of default (N.O.D) to a defaulting borrower. This formal notification is recorded by the county and marks the beginning of legal proceedings against the borrower. Websites like Zillow and Realty Trac often publish this information, sourced from county records, highlighting its public availability...

2. Notice of Sale/Auction

The next stage involves issuing a notice of sale, which must detail key information such as borrower and lender details, loan specifics, property description, sale time and location, and the redemption period. This notice is published for six weeks, and occupants must receive personal notice at least four weeks before the sale...

3. Redemption Period

This final phase is dynamic, with potential investors approaching homeowners to buy the deed if the bid is lower than the home's value. Homeowners might also attempt to sell the property to cover the redemption amount and avoid foreclosure on their record...

Post-Redemption: Real Estate Owned (REO) Properties

After the redemption period, the sale certificate holder, typically the bank, becomes the legal owner and can assume possession. If the house is occupied, eviction processes might be necessary. Subsequently, the property is listed for sale as an REO property through the bank's real estate agents...

For more information or assistance regarding foreclosures in the Twin Cities, contact the Minnesota Property Group and inquire about our foreclosure specialist.