My home in Minnesota is going to be sold at a foreclosure sale in the next few weeks. I don’t want to lose the house. I think I can get my hands on some money by borrowing from relatives. Is it possible for me to get the house back even if the foreclosure sale takes place?
Yes. In Minnesota, foreclosed homeowners get a limited amount of time to repurchase or “redeem” the home after a foreclosure sale. Depending on your situation, you’ll get a five-week, six-month, or 12-month redemption period. (This is explained in further detail below.)
In order to redeem the home, you would have to reimburse the purchaser (the person or entity who bought the home at the foreclosure sale) for the full price paid at the sale, plus various other costs.
How Long You Get to Redeem Your Home After a Minnesota Foreclosure Sale
Under Minnesota law, foreclosed homeowners get a certain amount of time to redeem the home after the sale.
General redemption period. Most homeowners get a six-month redemption period (Minn. Stat. Ann. § 580.23, Subd. 1; § 581.10).
Longer redemption period under certain circumstances. Minnesota homeowners get a 12-month redemption period if:
- the amount due as of the date of the filing of the notice of foreclosure sale is less than two-thirds of the original principal amount of the loan
- the mortgaged property is bigger than 40 acres in size, or
- the mortgaged property is between 10 and 40 acres and is in agricultural use. (For parcels in agricultural use, the homeowner may agree to waive the 12-month redemption period. If there is a waiver, the regular six-month period applies.) (Minn. Stat. Ann. § 580.23, Subd. 4; § 581.10).
Reduced redemption period for abandoned properties. If the homeowner abandons (leaves) the home, the redemption period is five weeks (Minn. Stat. Ann. § 582.032, § 581.10).
Reduced redemption period if homeowner postpones the sale. Minnesota law permits the homeowner to postpone the foreclosure sale, but the trade-off is a reduced redemption period of five weeks (Minn. Rev. Stat. § 580.07). (Learn more about how to postpone a Minnesota foreclosure sale.)
How to Find Out the Length of the Redemption Period
Most residential foreclosures in Minnesota are nonjudicial, which means the foreclosure takes place without court supervision. Under Minnesota law, you’ll receive a notice of your redemption rights as part of the nonjudicial foreclosure process (Minn. Stat. Ann. § 580.041).
If the foreclosure happens to be judicial, which means the lender files a lawsuit in state court to foreclosure the home, the redemption period will likely be listed in the complaint. (To learn more about foreclosure laws and procedures in Minnesota, visit Nolo’s Minnesota Foreclosure Law Center.)
How Much You'll Have to Pay to Get Your Home Back
In order to redeem, you must pay the full amount that the purchaser paid at the sale, plus interest and certain costs (Minn. Stat. Ann. § 580.23, § 581.10).
You can find out the amount needed to redeem (and who the winning bidder at the sale was) by attending the sheriff's sale (the foreclosure sale) or by contacting the sheriff's office after the sale.
You Can Stay In the Home During the Redemption Period
You have the right to live in the home during the redemption period (Minn. Stat. Ann. § 580.041). At the end of the redemption period, if you do not redeem (or sell the property), you will have to leave the home. Then you won’t get another opportunity to get your house back.
You Can Sell the Home During the Redemption Period
If you decide you don’t want to redeem the house, you can attempt to sell it during the redemption period. You must sell it for enough to pay off the winning bidder from the foreclosure sale plus interest, fees, and other claims against the property. If there are any proceeds left after these amounts are paid, you may keep that extra money (Minn. Stat. Ann. § 580.041).
You Can Also Take Action Before the Sale to Save the Home
Keep in mind that there may also be other ways available to you to save the home, other than redeeming the property, if you act before the foreclosure sale. For example, you could potentially:
- catch up on the past-due amounts and resume the making monthly payments (this is called reinstating the loan), or
- work out an alternative to foreclosure with the lender, such as a mortgage modification, forbearance agreement, or repayment plan.
Finding Minnesota’s Redemption Laws
To find the statutes that discuss your right to redeem the home in Minnesota, go to Chapter 580, Chapter 581, and Chapter 582 of the Minnesota Statutes.