The purpose of these instructions are to give you solid, factual information that will help you to make the best decision(s) for yourself, your family, and all those who may be affected by a home in foreclosure.
The Minnesota Foreclosure laws are some of the most liberal in the entire nation. Thankfully, I’m not a lawyer nor an accountant, so this is not legal advice, nor accounting advice. In fact, this isn’t even advice and I’m not really here right now.
Learn about the Minnesota Foreclosure Process and how it works: BELOW IS A TIMELINE OF THE FORECLOSURE PROCESS IN MINNESOTA:
Step One, Day 0: The process begins when a lender files a Notice of Default with the county recorder identifying the default amount and the date the borrower must pay off the default. The notice is mailed and served to the borrower and other affected parties. Up to the day of the sheriff’s sale, the borrower may pay off the default plus any applicable costs of foreclosure and stop the foreclosure process. Six weeks after the notice of default is filed, the lender can schedule a sheriff’s sale of the property. During this period of time, the lender (or their attorney) must advertise the sale in a publication (either the finance and commerce or the local newspaper). This notice identifies the parties and the date of the sale and the amount claimed or amount due to bring the defaulted note current.
Step Two, Day 42: Forty-two days after the Notice of Default is recorded, the sheriff sale takes place. The Sale/Auction is held as a public auction at the time and place designated in the Notice of Sale (published in the newspaper and copied to the homeowner), and conducted by the sheriff w/ a lender’s representative. The successful bidder must pay immediately with cash or cashier’s checks in the full amount of the bid. The successful bidder receives a sheriff’s deed on completion of the sale. The lender usually bids in the amount of the balance due plus costs. If no one else bids, the property reverts to the lender.
Step Three, Day 43: After the Sheriff Sale, the homeowner no longer has the right to catch up the defaulted loan. However, the homeowner does have the right to the propety and the right to sell the property for 180 days. This 180 redemptiion period is a time the homeowner gets to find a new loan or sell the property. If the homeowner is successful at selling the home and paying off the loan, the foreclosure says off their credit. There is usually not a lot of equity in the property so the chances of paying off the loan may be slim; however, sometimes things can be worked out with the lender where they take less than what’s owed as full pay off. At the end of the 180 days, the sheriff will physically evict you out of the property if you are not gone already. This video shows what how that looks.
Believe it or not, your lender does not want to own this real estate and foreclosing on homes for them is a losing proposition – well, really for everyone involved. There are two main ways than we can help. The first being that we bring some clarity and hopefully closure to your situation. The second major way is that by avoiding foreclosure you are really helping save your credit.
You see, most banks are dealing with a tremendous amount of foreclosures right now, and they have set up, what are called loss mitigation departments to handle alternatives to the sheriff’s sale. One of the most common strategies is called the pre-foreclosure sale or short sale. This is when the lender agrees to accept less than what’s owed on the property as full payoff and may consider the account closed.
You see, most banks are dealing with a tremendous amount of foreclosures right now, and they have set up, what are called loss mitigation departments to handle alternatives to the sheriff’s sale. One of the most common strategies is called the pre-foreclosure sale or short sale. This is when the lender agrees to accept less than what’s owed on the property as full payoff and may consider the account closed.
If you or anyone you know needs help to avoid a foreclosure, please have them contact us via our website at http://LakesAreaHomeBuyers.com
Thanks.
