Summary of Minnesota's Foreclosure Laws

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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.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under power of sale in a mortgage

Time to respond

In most cases, foreclosing party must mail the borrower a notice of default giving 30 days to cure before officially starting a foreclosure, along with a notice about foreclosure prevention counseling. Foreclosing party must serve notice of sale on the occupant of the home, along with a foreclosure advice notice, at least four weeks before the sale and must publish the notice six weeks before the sale.

Reinstatement of loan before sale

Available any time before the foreclosure sale

Redemption after sale

For most borrowers, available for six months after the sale. In some cases, redemption period is 12 months (for example, the amount due is less than two-thirds of the original principal amount of the loan) or five weeks (abandoned homes or if borrower postpones the sale). Former owner may stay in the house during this period..

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

Protections under the federal Servicemembers Civil Relief Act extended to service members called to state active service. Minn. Stat. § 190.055

Deficiency judgments

Not allowed in nonjudicial foreclosure with six-month redemption period (most common type of foreclosure) or five-week redemption period (applicable to abandoned properties)

Cash exempted in bankruptcy

About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions

Notice to leave after house is sold

New owner may file an eviction lawsuit after the redemption period expires.

Foreclosure statutes

Minn. Stat. §§ 580.01 to 580.30 (nonjudicial foreclosures)

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