Minnesota Home Foreclosure Laws
Learn about typical procedures as well as protections for homeowners in Minnesota foreclosures.
Minnesota foreclosures are typically nonjudicial (called “foreclosure by advertisement” in Minnesota), which means they take place without court supervision. If you're about to go through a foreclosure in Minnesota, you should find out more about your rights under the state's foreclosure laws. For example, you should know that you get the right to pay the past-due amounts before the sale to reinstate the mortgage. You also get the right to pay off the mortgage debt after the sale and redeem the home.
The following summary gives information about many of the key features of Minnesota foreclosure law along with citations to the statutes so you can read the law yourself.
How to Find Minnesota’s Foreclosure Laws
The citations to Minnesota’s foreclosure statutes are:
- Minnesota Statutes Sections 580.01 through 580.30 (foreclosure by advertisement)
- Minnesota Statutes Sections 581.01 through 581.12 (foreclosure by action), and
- Minnesota Statutes Sections 582.01 through 582.32 (general foreclosure provisions).
Minnesota’s Foreclosure Laws
We’ve summarized the main parts of Minnesota’s foreclosure laws below. You can find more detailed articles on various aspects of Minnesota foreclosure law in Nolo’s Minnesota Foreclosure Law Center.
Most Common Type of Foreclosure Process in Minnesota
The most common type of foreclosure process in Minnesota is nonjudicial, which means it happens outside of court. Judicial foreclosures (called “foreclosures by action” in Minnesota), which go through the court system, can also occur. (Learn more about nonjudicial and judicial foreclosures.)
Since the majority of foreclosures in Minnesota are nonjudicial, this article focuses on that process.
Notice of the Foreclosure
In Minnesota, a foreclosing party must give the defaulting borrower the following notices.
Notice of the default. In most cases, the foreclosing party must mail the borrower a written notice of any default before officially starting a foreclosure. The notice must provide the borrower with 30 days to cure the default. Minn. Stat. § 47.20.
Notice of availability of foreclosure prevention counseling. Along with the notice of default, the foreclosing party must also provide notice that foreclosure prevention counseling services are available and that the homeowner's contact information will be sent to an approved foreclosure prevention agency. Minn. Stat. §§ 580.021, 580.022, 580.03.
Notice of sale. To start the foreclosure process, the foreclosing party must first file a notice of the pendency of the foreclosure with the county recorder’s office. Minn. Stat. § 580.032. After filing the notice of pendency, it must publish a notice of sale for six weeks before the sale. The foreclosing party must also serve a notice of sale to the occupant of the home four weeks prior to the sale. Minn. Stat. § 580.03.
Foreclosure advice to owners and notice of redemption rights. Along with the notice of sale, the foreclosing party must provide a foreclosure advice notice, which provides information about how to get help, as well as a notice of redemption rights providing information about what happens after the foreclosure sale. The foreclosure advice notice must also be provided with each subsequent written communication mailed to the borrower. A foreclosing party is deemed to have complied with these requirements if it sends the foreclosure advice notice at least once every 60 days up to the date of the foreclosure sale. Minn. Stat. § 580.041.
Special Foreclosure Protections in Minnesota
Minnesota law extends the protections under the federal Servicemembers Civil Relief Act to service members called to state active service. Minn. Stat. § 190.055.
Minnesota law permits the homeowner to postpone the foreclosure sale, but the trade-off is a reduced redemption period of five weeks. Minn. Rev. Stat. § 580.07. (Learn more about how to postpone a Minnesota foreclosure sale.)
Reinstating the Mortgage Before the Foreclosure Sale in Minnesota
“Reinstating” is when the borrower catches up on the defaulted mortgage's missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
In Minnesota, the borrower has the right to reinstate at any time prior to the sale. Minn. Stat. § 580.30.
Right of Redemption After Foreclosure in Minnesota
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure.
Most borrowers in Minnesota get six months to redeem the home after the foreclosure. Minn. Stat. Ann. § 580.23. However, in certain situations, the redemption period will be:
- one year (for example, certain agricultural properties or where the amount due is less than 2/3 of the original principal amount of mortgage), or
- five weeks (abandoned homes). (These time frames apply to both nonjudicial and judicial foreclosures. Minn. Stat. Ann. § 581.10. To get details on redemption after a foreclosure in Minnesota, see Nolo’s article If I lose my home to foreclosure in Minnesota, can I get it back?)
If the borrower or homeowner postpones the sale, the redemption period is five weeks. Minn. Rev. Stat. § 580.07.
Minnesota’s Deficiency Laws
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Minnesota, the foreclosing party cannot get a deficiency judgment against the borrower if the mortgage is foreclosed nonjudicially and one of the following applies: there is a six-month redemption period or there is a five-week redemption period (applicable to abandoned properties). Minn. Stat. § 582.30. (For a summary of the deficiency law in Minnesota, see Minnesota Laws on Post-Foreclosure Deficiency.)
Notice to Leave After the Foreclosure Sale
After the redemption period ends, the new owner may file an eviction lawsuit against the former owners. Minn. Stat. § 504B.285.