Home foreclosure is preventable. We all have unexpected expenses that can result in late mortgage payments. It’s important to know the laws in Minnesota and have someone in your corner when rough times come and this happens. You can avoid the foreclosure sale of your property if you take the right steps.

In the State of Minnesota, if you have neglected to make your monthly payments, your mortgage lender can send you a default notice and then begin a court action against you. If the court rules against you, the sale of your house will be scheduled. Minnesota foreclosures take approximately four months.

But the usual course of action that a lender will take in Minnesota is an out-of-court foreclosure. Most mortgages will have a power-of-sale clause that allows the lender to schedule the house sale after mailing a default notice to the borrower.

Listed on the notice will be the names of the borrower, owner, and lender, along with the original loan amount and mortgage date. The property description is included, along with the time and location of the foreclosure sale, the default amount due, and the period for redemption. The notice of sale must be published in the local newspaper for six weeks, and the occupants of the property must be given the notice in person at least four- weeks prior to the sale.

You Can Avoid Foreclosure in Minnesota

According to Minnesota foreclosure law, all junior lien holders and parties with an interest in the property may file a request for Notice of Mortgage Foreclosure Proceeding. Notice is served on any requesting party by mail.

The sheriff or his deputy in the county where the property is located conducts the sale by auction, and the property must be sold to the highest bidder. Anyone can bid at the sale, including the lender. The winning bidder must pay the full amount by cash or cashier’s check, unless he is the lender. The sheriff will give him a certificate of sale that effectively transfers ownership and possession rights to him after a redemption period that lasts six months and in some instances, twelve months.

Whether the foreclosure is court-ordered or handled out of court, you as a homeowner will have a chance to redeem your property at each different stage of the process. If you can pay the default amount, along with related fees and costs, you can, by following a set procedure, get your house back, but it is crucial to act quickly and prevent your house from being put up for sale.