Minnesota passed a law a couple of years ago that allows homeowners to postpone a foreclosure on their home. If an individual is struggling to make their monthly mortgage payments, the law allows them to take action to postpone or delay the foreclosure sale. The process of seizing and selling property to repay a debt is called the Sheriff’s Auction or the Sheriff’s Sale. This program gives homeowners an extra five months to take advantage of low mortgage rates.
The main reason to use a delay is that it will give the homeowner more time to find a solution, by postponing the foreclosure or Sheriff’s Sale. The objective of this is to either bring their mortgage current, negotiate a payment plan, enter into a deed in lieu, modify their loan, or otherwise provide time to prevent a foreclosure of the borrowers home. One thing to note is that, in Minnesota, postponing the foreclosure process also reduces the redemption period.
This means that the foreclosure sale will be postponed for up to five months, giving the homeowner more time to catch up on their monthly mortgage payments or work out a solution with their lender. This means that if you change your mind about the purchase, you will only have five weeks to return the item instead of the usual six months.
If the original redemption period for your home sale was six months, the homeowner can then postpone the sale by up to five additional months; if the redemption period was 12 months, the qualified borrower can postpone the sale by up to 11 additional months. If you postpone the foreclosure sale, the redemption period will be reduced to five weeks.
Steps to take to delay a foreclosure in Minnesota
It is always best to get professional legal or HUD advice before making any decisions concerning your situation. Before making the decision to delay or postpone a foreclosure sale, homeowners should always speak to a foreclosure specialist to learn about the advantages and disadvantages of postponement, as well as any possible consequences. If you want to find a foreclosure specialist who is approved by HUD, click here.
You will need to fill out and sign an affidavit. For more information about the process or to speak to a foreclosure Housing Counselor in your area, you can use the link on the HUD website. You can find help with owning a home in Minnesota by contacting the Minnesota Home Ownership Center. The center can be reached by phone at 651-659-9336 or 866-462-6466.
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