I live in Minnesota and my house is in foreclosure. I’d like to catch up on my payments and save my house, but I’m running out of time. Is there any way for me to postpone the foreclosure sale?
Yes. Minnesota law permits you to delay the foreclosure sale, but you’ll have to agree to a reduced redemption period.
What is the redemption period? In Minnesota, foreclosed homeowners get a limited amount of time to repurchase or “redeem” the home after a foreclosure sale. This is called a redemption period. Learn more about the redemption period after a Minnesota foreclosure.
Postponing the sale may give you enough time to bring the mortgage loan current and stop the foreclosure. You could also use the time to explore an alternative to foreclosure, such as a mortgage modification.
Exactly how long of a postponement you’ll get depends on your original redemption period. You’ll get either:
The new sale date will be the first day that is not a Saturday, Sunday, or legal holiday that is five or 11 months after the original sale date.
If you postpone the foreclosure sale, the trade-off is that your redemption period is reduced to just five weeks.
To be eligible for a foreclosure postponement, you and your property must meet the following criteria.
To postpone the foreclosure sale, you must do the following.
You must complete all of the above steps between:
You can only postpone the sale once, regardless of whether you reinstate the mortgage (by catching up on the past-due payments) before the postponed foreclosure sale.
Whether getting a postponement is a good idea depends on your ultimate goal.
You want to save your home. Ultimately, if you think you can catch up on your past-due payments, but you just need a little more time to do so, getting a postponement is probably a good idea. It's also a good idea if you want to try to get a loan modification or need time to work out another alternative to foreclosure.
You don't plan to keep the home. However, if you’re just trying to buy some extra time in your home, postponing the sale won’t really help you since the redemption period is shortened to five weeks. In Minnesota, you have the right to live in the home during the redemption period -- if you gain the time due to the postponement but lose most of the redemption period you are in the same boat as if you didn't get the postponement.
If you have any questions about whether you should postpone the foreclosure sale, consult with a Minnesota attorney.
To find the statute that covers postponing a foreclosure sale in Minnesota, along with the form of affidavit that you must use to get a postponement, go to Chapter 580, § 580.07 of the Minnesota Statutes.