Foreclosure by Advertisement
This is the most common type of residential foreclosure in Minnesota. This foreclosure does not go through
the court system for approval. The lender serves a notice of the foreclosure on the occupants of the property, must
publish a legal notice of the foreclosure in certain legally designated newspapers and must agree to forgive any debt that
is remaining after the foreclosure is complete.
Prior to the Sheriff's Sale the borrower
can redeem the mortgage by paying the amounts in default, the accruing interest, late fees, costs of the foreclosure and attorney
fees. If the borrower redeems in a timely fashion the mortgage remains in place.
After the
Sheriff's Sale the borrower continues to own the property and has the right to occupy the property during the Period of
Redemption which is normally lasts 6 months from the date of the Sheriff's Sale. The borrower cannot stop the foreclosure
by merely curing the default; however, the borrower can stop the foreclosure by paying off the amount bid at the Sheriff's
Sale. This is referred to as a "redemption".
At the end of the redemption period,
if the borrowers have not redeemed, the borrowers ownership in the property expires along with the borrowers right to occupancy.
