Minnesota Foreclosure Homes For Sale

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Here’s some information about foreclosures, including how they happen, how to find them, and how to stop them:

What is a foreclosure?

A foreclosure occurs when a lender takes control of a property after a borrower misses multiple mortgage payments. This is also known as defaulting on the loan.

How to find foreclosures

You can find foreclosures by:

Working with a real estate agent who specializes in foreclosed properties
Checking Boardwalk premier realty
Reading the newspaper
Visiting bank websites
Checking public records
>Driving around and looking for foreclosures
Visiting auction houses

How long does the foreclosure process take?

The foreclosure process can take several years. In Minnesota, a typical foreclosure by advertisement takes about eight to nine months, including a six-month redemption period.

How to stop a foreclosure

One way to stop a foreclosure is to “redeem” the property by paying off the full amount of the loan before the foreclosure sale. In Minnesota, most homeowners have six months to redeem the property after the foreclosure.

Where to file a complaint
Consumer Financial Protection Bureau at (855) 411-2372 or online.

Typically, your lender can’t initiate foreclosure unless you’re at least 120 days behind on your mortgage payments — this is known as the pre-foreclosure period.

During those 120 days, your lender is also required to provide “loss mitigation” options “these are alternative plans for how you can catch up on your mortgage and/or resolve the situation with as little damage to your credit and finances as possible”

Examples of typical loss mitigation options:

Repayment plan
Forbearance
Loan modification
Short sale
Deed-in-lieu

Credit damage due to foreclosure. Once you enter foreclosure, your credit score will continue to drop. The same pattern holds that we saw above with missed payments: the higher your score was to begin with, the more precipitously your score will drop.

Slow credit recovery after foreclosure. The data also show that it can take around three to seven years for your score to fully recover after a foreclosure, short sale or deed-in-lieu of foreclosure.

Loan program	Waiting period	With extenuating circumstances
Conventional	7 years	3 years
FHA	3 years	Less than 3 years
VA	2 years	Less than 2 years
USDA	3 years	Less than 3 years

Minnesota Foreclosed cities below.

Foreclosures

A mortgage foreclosure can affect renters as well as property owners. Foreclosures sometimes, but not always, involve the Court as part of an eviction case or other civil action to enforce the foreclosure.

Laws & Rules on Foreclosure

MN Statutes Ch. 580 Mortgages; Foreclosure by Advertisement

You should talk with a lawyer to get advice on how the laws and rules may affect your case.

How long does a foreclosure take in MN?

The sale is followed by a redemption period, which is usually six months. Accordingly, assuming there is no bankruptcy filing, a typical foreclosure by advertisement (including the typical six month redemption period) generally takes around eight to nine months.

To help home owners who maybe in the need of where to go or what to do to prevent their home being foreclose on.

Foreclosure Resources

Consumer Financial Protection Bureau (CFPB) (Federal agency that helps people deal with financial services – banking, credit cards, loans, mortgages, etc.)
Foreclosure Assistance (MN Attorney General’s Office)
Foreclosure for Homeowners (LawHelpMN.org)
Foreclosure for Renters (LawHelpMN.org)
How to Postpone a Foreclosure/Sheriff’s Sale in Minnesota (online form tool)
Legal Fact Sheet: “When Your Landlord Loses a Building to Foreclosure”
MN Homeownership Center
Tenants Dealing with a Foreclosure (HOME Line website)
Real Estate Forms (MN Dept. of Commerce)
- Quit claim deed, contract for deed, mortgage forms, liens, etc. These forms are also called “Uniform Conveyancing Blanks.”

Modification type		Effect
Lowering your mortgage interest rate	→	Reduces your monthly payment amount Reduces the total interest you’ll pay over the life of the loan
Extending your repayment term	→	Reduces your monthly payment Pushes back the date you’ll own your home outright Could increase how much you’ll pay in interest over the life of the loan
Reducing your outstanding principal balance	→	Reduces your monthly payment Forgives or suspends a portion of the outstanding loan amount
Adding your past-due balance to your outstanding loan amount and recalculating your repayment term	→	Reduces your monthly payment Increases the principal balance
Converting your loan type (for adjustable-rate loans or interest-only mortgages)	→	Converts your loan to a fully amortizing, fixed-rate mortgage Stabilizes your interest rate

What is a mortgage loan modification program?

The purpose of participating in a mortgage modification program is to make changes to your mortgage that’ll help you avoid missed payments and foreclosure.

Modifications can be especially helpful for homeowners who are experiencing a hardship that doesn’t have a clear end in sight. If, on the other hand, you’re recovering from a temporary problem — say you have a short-term illness or injury, or you’ve lost your job — you may want to look at less-permanent options like mortgage forbearance or refinancing.

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