Typically following non-payment of a debtors mortgage payments the bank will send a notice of foreclosure to the homeowner. In Minnesota a typical residential foreclosure is done by advertisement. A foreclosure by advertisement sets a date for a sheriff's sale at which time the property is put up for sale. Following the sheriff's sale the property goes into a six month redemption period where the homeowner and any other interested parties have the right to purchase the sheriff's certificate for the price paid at the sheriff's sale. During the six month redemption period the homeowner retains possession of the home until the expiration of the redemption period. Purchase of the sheriff's certificate is full satisfaction of the mortgage debt, however, any secondary loans on the property are not satisfied and lenders retain the ability to sue the homeowner for their unpaid debts.
Postponing Sheriff's Sales
Minnesota allows a homeowner to postpone a sheriff's sale by five months. A homeowner must follow the statutory procedures for postponing the sheriff's sale at least 15 days before the scheduled sheriff's sale. Postponing the sheriff's sale can allow a homeowner to pay the outstanding debt on the mortgage, or give them an opportunity to finalize a sale of the property and avoid foreclosure. Postponement of a sheriff's sale does reduce the redemption period on the property following the sheriff's sale from six months to five weeks. Postponement of a sheriff's sale is a useful tool for a homeowner and if you would like to determine your ability to postpone a scheduled sheriff's sale please contact one of our attorneys.
Short Sales
A short sale of a property is an agreement between the homeowner and the bank to accept less than the full amount of the debt so that the property may be sold. Short sales can be used to prevent foreclosure and allow a homeowner to sell their property without suffering the consequences of a foreclosure. It is important to have an attorney review your short sale documents prior to closing in order to ensure that your liability to the bank is fully satisfied. In some instances banks will remove the lien from the property allowing the sale to be completed, but retain its debt against the homeowner. In this instance the homeowner may still be liable for any deficiency between the amount of the sale price and the outstanding balance on the mortgage. Realtors are typically not attorneys and therefore it is important for a homeowner to have their short sale agreement reviewed prior to selling the property through a short sale.
Contact a Minneapolis/St Paul Attorney Today
If you are seeking legal representation or need information about our services, contact our office today. We have 3 convenient locations in the Twin Cities metro area. You can reach an experienced lawyer at 651-315-8755, Toll Free at 866-929-0453, or online.
