Minnesota Foreclosure Help – Stop Foreclosure in Minnesota


Finding Foreclosure Help in Minnesota

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Minneapolis Field Office

International Centre
920 Second Avenue South, Suite 1300
Minneapolis, MN 55402-4012
Phone: (612) 370-3000
Fax: (612) 370-3220

TTY: (612) 370-3186

Jurisdiction: State of Minnesota

Dexter Sidney
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Minnesota Foreclosure Laws Summary

Quick Facts:

  • Judicial foreclosure process is available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are mortgages and deeds of trust.
  • The timeline can vary by process, which typically takes 60 days.
  • The borrower has rights of redemption.
  • The lender may sue for deficiency judgements.

Lenders may foreclose on mortgages and deeds of trust in Minnesota through a judicial or non-judicial process.

Judicial Foreclosure
When there is no power of sale clause present in a mortgage deal, the judicial process is used. This is done by filing a lawsuit to obtain a court order to foreclose. Once this is approved, the property can be put up for sale.

Non-Judicial Foreclosure
If there is a power of sale clause present in a mortgage deal, then the non-judicial foreclosure process is used. When the borrower defaults on a mortgage, the lender gains the power to sell the property as long as he follows the “Power of Sale Foreclosure Guidelines.”

Power of Sale Foreclosure Guidelines
In the State of Minnesota, there are conditions that need to be met before a non-judicial foreclosure process is to continue. These are:

  • There must be no existing lawsuit on the mortgage payment.
  • There are no records of new mortgage lenders.
  • An existing notice that has been sent 8 weeks before the foreclosure.

The non-judicial foreclosure process can be done by following these steps:

A notice of sale must be published, which includes the description of the property, the names of the parties involved, information about the mortgage, as well as the time and date of the foreclosure sale.

The sheriff we be the one conducting the sale, where the property will be sold to the highest bidder at the auction. A certificate of sale will be given to the winning bidder.

The lender may file for a deficiency suit up to 1 year from the date of the foreclosure sale, but it is limited to the fair market value of the property and the remaining balance on the loan.