If you have fallen behind on your mortgage in Minnesota, the most important thing to know is that the process gives you real time, and much of that time comes after the sale, not before it. Minnesota works differently from a lot of states, so understanding the order of events puts you back in control of your options.
We are a local team based just across the river in Hudson, Wisconsin, and we buy houses for cash on the Minnesota side of the St. Croix Valley and across the east metro. We have worked with many homeowners who were behind. This page explains how it works so you can see your choices. It is general information, not legal advice, and if you are in this situation it is worth talking to an attorney. The Minnesota Homeownership Center also helps homeowners at no cost.
How Does Foreclosure Work in Minnesota?
Most Minnesota foreclosures use a process called foreclosure by advertisement, which is non-judicial. That means the lender does not have to file a lawsuit or take you to court. Instead, the lender publishes and serves a notice of the sheriff’s sale, and if the default is not cured, the county sheriff sells the property at a public auction.
Here is the part that surprises people: in Minnesota, the sheriff’s sale comes first, and then a redemption period runs afterward. You do not lose your home the day of the sale. You keep living in it through the redemption period, and only at the end of that period, if you have not acted, does the buyer from the sale become the owner. There is also a judicial path, called foreclosure by action, but it is far less common.
How Much Time Do I Have?
More than the sale date suggests, because the clock keeps running after it. Before the sale, you receive formal notices, and for an owner-occupied home the lender must deliver a special foreclosure advice notice spelling out your rights. The sale itself can also be postponed under certain conditions, which can add time.
After the sale, the redemption period begins. For most homes this is six months, and in certain cases it runs twelve. A shorter period can apply to homes that have been abandoned. The exact length is written in the foreclosure notice for your property, so read that document or have someone read it with you. From the first missed payment to the end of redemption, this often stretches well over a year.
Can I Stop the Foreclosure and Keep My Home?
Possibly, and Minnesota gives you two different tools that people often confuse.
Before the sale, you can reinstate. That means paying the missed payments plus allowed costs to bring the loan current, and in most cases you do not have to pay off the entire loan balance to do it. Reinstatement stops the foreclosure and puts you back on track.
After the sale, you can redeem. That means paying the full amount the property sold for at the sheriff’s sale, plus interest and costs, during the redemption period. Redemption is a higher bar than reinstatement because it is the whole sale price, not just the arrears.
You may also be able to work out a loan modification or other option with your servicer, and owner-occupants can typically request a meeting to discuss alternatives. If keeping the house is the goal, chase these early.
Can I Sell My House During the Redemption Period?
Yes, and for many people this is the best outcome. Because you keep ownership and possession until the redemption period ends, you can sell the home during that window, pay off what is owed, and keep whatever equity is left, instead of losing the house and that equity when the period runs out. The clock is the thing to respect: a sale has to close and fund before redemption expires, so the earlier you start, the more room you have. We buy houses as-is, for cash, and can often close well inside a redemption period.
Be Careful Who Approaches You After the Sale
Minnesota’s own foreclosure notice includes a warning worth repeating. After a sheriff’s sale, people may approach you offering to buy your house or asking you to sign over the deed for little or nothing. Before you sign anything, find out exactly how much your home sold for at the sale, and understand what your equity actually is, so you can judge whether an offer is fair or whether you would do better redeeming or selling on the open market. A legitimate cash buyer will explain those numbers to you, not rush you past them. We are glad to walk through them with you, with no pressure and no obligation.
Will I Owe Money After the Foreclosure?
It depends on the type of foreclosure and the sale. A foreclosure by advertisement generally does not allow the lender to pursue you for a deficiency, the gap between what you owed and what the home sold for, whereas that outcome can differ in a judicial foreclosure. Because this turns on the specifics, confirm your situation with an attorney before you assume you do or do not owe anything after a sale.
The Bottom Line
If keeping the house is realistic, look hard at reinstatement and loss-mitigation first. But if it is not, selling during the redemption period is usually the way to protect your credit and your equity. We will look at your situation honestly and tell you plainly whether selling to us makes sense, with no pressure. To talk it through, call 715-716-7272.