Mortgage Foreclosure in Minnesota
Foreclosure on mortgages have become all too common
Defaulted Home Loans
An unfortunate consequence of the recession is that this resulted in thousands of homes loans being defaulted on. Mortgage lenders are foreclosing on homes at an unprecedented rate. In the state of MN, notice of foreclosure must be served on all occupants and owners of the property being foreclosed upon a minimum of four weeks prior to sale of the property.
Homestead properties require eight weeks notice of foreclosure before sale.
Our Twin Cities process servers diligently execute mortgage pre-foreclosure notices to the parties affected in the process of home loan bank foreclosures. There were 11,834 foreclosures in Minnesota in 2013. This number is a 34 percent decrease from 2012, with the relief being relatively balanced between the Twin Cities metro area. Legal Information – Mortgages and Foreclosures.
How are Mortgage Liens Treated in Minnesota?
Minnesota is generally known as a title theory state where the property title remains “in trust” until payment in full occurs for the underlying loan. The document that secures the title is usually called a mortgage and in Minnesota the mortgage serves the same purpose and generally contains the same terms as a deed of trust and serves the same function in a non-judicial foreclosure.
How are Minnesota Mortgages Foreclosed?
The primary method of foreclosure in Minnesota involves what is known as a non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly called a foreclosure by advertisement. When the mortgage is initially signed it will usually contain a provision called a power of sale clause which upon default allows an attorney to foreclose on the property in order to satisfy the underlying defaulted loan which is sometimes referred to as a bond. The attorney acts as a representative of the lender to effectuate the sale which typically occurs in the form of an auction. Auctions are conducted by the Sheriff. Because this is a non-judicial remedy there are very stringent notice requirements and the legal documents are required to contain the power of sale language in order to use this type of foreclosure method.