There are two ways to foreclose a mortgage: by action or by advertisement.
The least common of the two methods is mortgage foreclosure by action, which means a lawsuit is started to determine how valid a mortgage is and to resolve other issues.
By far the most common form of mortgage foreclosure is by advertisement under Minnesota statute Chapters 580 and 582. Foreclosure by advertisement means that the owner is served notice of the default and a minimum of 6 weeks in which to make the mortgage current. During this period, the notice of foreclosure is advertised in the newspaper. The Courts are not involved. If the mortgage is not made current during this period, the property is then sold at a sheriff’s auction to the highest bidder. Next, there is a six month period of redemption in which the owner may redeem the property by paying the mortgage in full, including any costs of foreclosure, accrued interest and the principal. The owner has the right to occupy the property without paying anything during the redemption period, but if the mortgage is not fully paid by the expiration of the redemption period, the owner will be evicted.
This is merely a simple explanation. Each mortgage foreclosure is unique in its own right due to title issues, valuation of property, possibility of a short sale, and numerous other factors. But make no mistake about it, real estate foreclosure is an area where you need the solid and informed legal representation of a experienced law firm like Kallemeyn & Kallemeyn.
I am happy to address legal questions you may have. Please email any suggested topics to Charles@Kallemeyn.com