Mortgage Foreclosures

Mortgage Foreclosures are actions taken to foreclose on real estate. Mortgage Foreclosures are covered by Minnesota Statutes Chapters 580 to 582. There are 2 main types of foreclosures which include Mortgage Foreclosure by Advertisement and Mortgage Foreclosure by Action.

Types of Foreclosure

Mortgage Foreclosure by Advertisement is the most common type of foreclosure. The usual basis for this foreclosure is a default in the terms of the mortgage (typically failure to pay). The attorney hired by the mortgage company will prepare the Notice of Mortgage Foreclosure Sale and arrange for service and publication of the notice.

Some attorney's have the Sheriff's Office serve the notice, but it is not mandatory. Others simply notify the Sheriff's Office of the sale. Since attorneys typically do not involve the Sheriff until the time of sale, the Sheriff's Office has limited information for each sale. Any inquires regarding reinstating a mortgage should be directed to the attorney preparing the sale. The telephone number is usually printed on the bottom of the Notice of Sale.

Mortgage Foreclosures by Action are court ordered by a judge. A District Court Judge will make a direct order to the Sheriff to sell the specific parcel of real property. The notices are prepared by the plaintiff's attorney, but a Sheriff's Deputy will sign the Notice of Sale. With this type of foreclosure, the notice is posted in 3 public places, the individual is served and it is published in the newspaper.

Procedures of Mortgage Foreclosure Sales

The sale is conducted by a Sheriff's Deputy in an open bidding process. Crow Wing County conducts sales at 10 a.m. on Tuesdays and Thursdays. They are held by the Civil Department at the Sheriff's Office. The mortgage company's representative will open the bid with the exact amount due at the time of the sale. Following this initial bid, other bidders are offered a chance to bid on the property.

If you are preparing to bid on a property you will need to have cash or certified funds for the entire amount at the sale. To find out how much a property will be selling for, you should contact the attorney for the mortgage company. You will then need at least $1 more than the mortgage company's bid.

If the certified funds are written out for more than the property is sold for, the Sheriff's Office will return the additional funds to you in a timely manner. The successful bidder will then receive a Sheriff's Certificate of Sale. This document proves that all statutory requirements have been met.

The mortgage company's attorney is charged a fee for the cost of conducting the sale. The cost of holding a foreclosure sale is $65.

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