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.
