If you're facing a foreclosure in Minnesota, you have the right to delay a foreclosure sale. Under Minnesota law, most homeowners get the right to postpone an upcoming foreclosure sale by either five months or 11 months, depending on the circumstances.
The trade-off for getting a delay is that you'll have to agree to a shorter redemption period. But giving up some time to redeem the property after the sale might be a small price to pay if a delay buys you enough time to work out an alternative to foreclosure or figure out a long-term solution to the problem that caused you to fall behind on your payments.
To qualify for a foreclosure sale postponement, you and your property must meet the following criteria.
Exactly how long of a delay 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.
Delaying the sale might give you enough time to bring the loan current and stop the foreclosure. You could also use the time to (hopefully) get a loss mitigation option, like a mortgage modification.
If you postpone the foreclosure sale, the compromise is that your redemption period is reduced automatically to five weeks.
To postpone the foreclosure sale, you must do the following.
You get only a small window of time to delay the sale. You must complete all of the above steps between:
You can postpone the sale just once, regardless of whether you reinstate the loan before the postponed foreclosure sale. (Minn. Rev. Stat. § 580.07).
Whether delaying the foreclosure sale is a good idea depends on your ultimate goal.
Ultimately, if you think you can catch up on your past-due payments, but you need a little more time to do so, getting a postponement is probably a good idea. It's also probably a good idea if you need to some time to finalize a loan modification.
In Minnesota, you have the right to live in the home during the redemption period. (Minn. Stat. Ann. § 580.041). So, if you're trying to buy some extra time in your home, postponing the sale won't really help you because the redemption period is shortened to five weeks. You'll gain time due to the sale postponement, but lose most of the redemption period—and you'll be in the same boat as if you didn't get the delay.
If you have any questions about whether you should postpone the foreclosure sale, consult with a foreclosure lawyer. Also, keep in mind that you might have other options for delaying a foreclosure, like fighting the foreclosure in court or filing for bankruptcy. To learn whether filing for bankruptcy is right for you, consider talking to a bankruptcy attorney.