Many Minnesota homeowners are facing foreclosure during these difficult economic times. Minnesota homeowners may wonder about the foreclosure process in Minnesota and the legal consequences of a foreclosure.
This is part two of a series on Minnesota foreclosures, and covers the basics of foreclosure by advertisement. Before reading this section, you might want to read an overview of Minnesota Foreclosure Law, which provides an overview of Foreclosure by Advertisement and Foreclosure by Action.
If your not sure what a foreclosure is, go to this link for a short explanation regarding the basics of Minnesota Foreclosures.
There are two types of foreclosure in Minnesota: Foreclosure by Advertisement and Foreclosure by Action. This article covers Foreclosure by Advertisement.
Foreclosure by Advertisement in Minnesota is the process of foreclosing on your property by advertising the foreclosure sale rather than filing a lawsuit (action) against you. Minnesota Foreclosure by Advertisement is usually simpler, cheaper, and quicker for the bank than Foreclosure by Action.
If you are a Minnesota homeowner facing foreclosure, you may be most concerned about whether you will be liable for the amount remaining owed on the mortgage after the foreclosure sale. This amount is called a deficiency. In other words, even after the foreclosure sale, there may not be enough money from the proceeds of the sale to cover the amount of the mortgage plus the expenses in fault with the foreclosure sale. Generally, a homeowner will not be liable for the deficiency if the property was foreclosed by advertisement, but a homeowner will be liable for the deficiency if the property was foreclosed by action.
How do you know if the property is being foreclosed by advertisement or by action? Typically, foreclosure by action wouldn’t fault you being personally served with a summons and complaint naming you in a lawsuit. Foreclosure by Advertisement would mean that there is no lawsuits or legal action against you, and instead, the bank is selling the property by advertising the foreclosure sale in a local newspaper.
Foreclosure by Advertisement cannot be used in all cases. Foreclosure by Advertisement is only available where the statutory requirements have been fulfilled. For example
The process for foreclosure by advertisement in Minnesota typically involves the following steps:
Learn more about Minnesota Foreclosures:
If you are facing a foreclosure in Minnesota, you are welcome to contact our law firm to schedule a meeting with a Minnesota real estate attorney to understand your legal rights, risks, and options.