If you are facing foreclosure in Minnesota, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in Minnesota
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of Minnesota foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|Common type of foreclosure process||Nonjudicial: under power of sale in deed of trust|
|Time to respond||Foreclosing party must serve notice of sale on homeowner at least four weeks before the sale and must publish the notice six weeks before the sale. Must include two notices entitled, “Help for Homeowners in Foreclosure,” and “Foreclosure: Advice to Tenants.”|
|Reinstatement of loan before sale||Available any time before the foreclosure sale|
|Redemption after sale||For most homeowners, available for six months after the sale. Former owner may stay in the house during this period (Section 581.11, 504B.285)|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Minn. Stat. §§ 72A.20(8)(b),(c)|
|Deficiency judgments||Nonjudicial: not available with a six-month redemption period (which will usually be the case)|
|Cash exempted in bankruptcy||About $11,000 for one person, $22,000 for a married couple under federal bankruptcy exemptions|
|Notice to leave after house is sold||New owner must give two months’ written notice after redemption period ends before filing an eviction lawsuit. Minn. Stat. § 504B.285|
|Foreclosure statutes||Minn. Stat. §§ 580.01 to 580.30|