When is My Home Loan in Default in Minnesota?
As soon as you miss your first payment, your home loan is in default and your mortgage lender can begin the foreclosure process. Not all lenders will start foreclosure with one missed payment, so you have a chance to catch up on your payments and late fees. If you are in a bind and won’t be able to catch up on your mortgage right away, you should consider one of the alternatives listed below.
Foreclosure Alternatives in Minnesota
If you are concerned about foreclosure, it is wise to familiarize yourself with the process and how you can keep your home. Below are some of the options you should consider if you want to avoid foreclosure.
Sell your home- If your financial situation is dire, but you have some equity, you can sell your home and may even come out ahead.
Mortgage modification- You can ask a lender if you can modify the terms of your mortgage loan instead of having them seize it. Get legal counsel to negotiate for you, so you have a better chance of success.
Foreclosure auction- If you cannot get a mortgage modification, a lender can sell your home at a sheriff’s sale, or foreclosure auction.
Redemption- Under Minnesota law, you have the opportunity to redeem the sale. During the six-month redemption period, you can live in your while you work on obtaining the funds to re-purchase your home for the amount owed on their home before the sheriff’s sale. If they cannot come up with the funding to purchase your home back, you must move out when the redemption period ends.
Affidavit of postponement-In Minnesota, you can delay a sheriff’s sale for up to five months so that you have the opportunity to bring your mortgage up to date. If you file an affidavit of postponement, your redemption period is just five weeks instead of six months.
Judicial foreclosure- You can fight your foreclosure in court if none of the alternatives above will work in the situation. This course of action could take months maybe longer to resolve.
For advice or financial assistance, you can contact one of the agencies listed below:
United States Department of Housing and Urban Development (HUD)
Minneapolis Field Office
920 Second Avenue South, Suite 1300
Minneapolis, MN 55402
Minnesota Housing Finance Agency
400 Sibley Street, Suite 300
St. Paul, MN 55101
(651) 296-7608 or (800) 657-3769
Minnesota Home Ownership Center
100 Payne Avenue, Suite 200
St. Paul, MN 55130
The above resources can provide you with information about the remedies to foreclosure but you also need legal advice. USattorneys recommends you speak with a foreclosure lawyer in Minnesota and get their advice about your claim.