A couple years ago Minnesota passed a law that allows homeowners across the state the right to delay or postpone a foreclosure on their home. The law allows individuals that have fallen behind on making their monthly mortgage payments to take some form of action, including postponing or delaying the foreclosure sale. This process can also be called the Sheriff's Auction or the Sheriff’s Sale. It provides an additional five months or so to the homeowner, so they need to take advantage of this window of time.
The number one reason for using a delay is that by postponing the foreclosure or Sheriff’s Sale, it will provide the homeowner additional time to find a solution. That can either involve bringing their mortgage current, negotiating a payment plan, entering into a deed in lieu, modifying their loan, and otherwise provide time to prevent a foreclosure of the borrowers home. One thing to note is that by postponing the foreclosure process in Minnesota, this also reduces the redemption period.
In effect postponing the Foreclosure Sale gives the homeowner up to five more months to bring their monthly mortgage current or mediate some type of solution with their lender. The tradeoff to entering into this delay process is that it will also reduce the redemption period to five weeks from the typical 6 month period.
If the original redemption period for your home sale was six months, the homeowner can then postpone the sale by five months; if the redemption period was 12 months, the qualified borrower can postpone the sale 11 months. In both cases the postponement of the foreclosure sale will automatically reduce the redemption period to five weeks, so always keep that in mind.
First of all, it is always highly recommended that the borrower consult a competent legal professional or HUD counselor for advice specific to their situation. Therefore before deciding to take the approach of delaying or postponing a Foreclosure Sale, homeowners that are impacted should always consult with a foreclosure specialist to understand both the pros and cons of a postponement as well as any possible implications to it. To find your local foreclosure HUD approved specialist, click here.
You will need to apply and to complete an affidavit. For additional information about the process or to speak to a foreclosure Housing Counselor in your area, you can use the link immediately above for a HUD counselor. Or you can proceed by contacting the Minnesota Home Ownership Center, which can be reached at area code 651-659-9336 or 866-462-6466.
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