- Following the foreclosure
sale, the mortgagor has a right under Minnesota law to redeem from the sale. Such a redemption annuls the sale. If there are
any junior liens, however, they are revived by the redemption by the mortgagor.
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The mortgagor must redeem
within six months of the date of the sale unless one or more of the following applies: - The mortgage was executed prior to July 1, 1967.
- The amount claimed due and owing as of the date of the notice
of foreclosure sale is less than two-thirds of the original principal amount secured by the mortgage.
- The mortgage was executed prior to July 1, 1987, and the
mortgaged property, as of the date of the execution of the mortgage, exceeded ten acres in size.
- The mortgage was executed prior to August 1, 1994, and the mortgaged property, as
of the date of the execution of the mortgage, exceeded ten acres but did not exceed 40 acres in size and was in agricultural
use as defined by Minnesota statute.
- The
mortgaged property, as of the date of the execution of the mortgage, exceeded 40 acres in size.
- The mortgage was executed on or after August 1, 1994, and the mortgaged property, as of the date of the execution of
the mortgage, exceeded ten acres but did not exceed 40 acres in size and was in agricultural use, as defined by Minnesota
statute.
- If one of the above applies, the redemption period is twelve months
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A mortgagor is able to waive his/her right to redemption
but it must be contained in a document separate from the mortgage or be executed separately and recorded by the lender in
the county recorders office.
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- During the redemption period,
the mortgagor is entitled to remain in possession of the property.
- He is therefore entitled to the rents, income and profits from the property
unless he has made an assignment of an interest in them.
- No assignment of rents and profits contained in a mortgage is enforceable under Minnesota law unless:
- it was (1) executed after August 1, 1977;
- (2) secured an original loan in excess of $100,000; and
- (3) not a lien on property that was entirely homesteaded as agricultural
property.
If
the debtor abandons the property, the lender can go through a process to shorten the redemption period.
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- In the case of an abandonment the redemption
period is five weeks.
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