Are you running against the clock with the threat of foreclosure looming over your head? If so, you may be feeling helpless and desperate for potential solutions. And it’s not very difficult to determine why. Mortgage payment troubles can have a devastating impact on your life, especially when they lead to foreclosure. From the emotional effect, it will have on both you and your family, to the tough financial situation that it will put you in, foreclosures are no cup of tea. As such, it’s important to do your very best to avoid foreclosure at all costs, even if you’re only weeks away from the bank ceasing your house.
If you’re looking for an effective solution that will help you combat your foreclosure problems, it’s important to remember that understanding the foreclosure process is the first step when it comes to navigating through it. As such, we are going to help you understand the foreclosure process a little more by taking a deep dive into it, and how it can be avoided, in Minneapolis MN.
Breakdown of Foreclosure in Minneapolis MN
Read on to learn more about how the foreclosure process operates in Minneapolis MN
What is foreclosure?
Foreclosure is the legal process that lenders use to take back property, generally after the borrower stops making loan payments. And it’s no fun.
However, it is very important to note that no matter how far you may be in the foreclosure process, it’s not the end of the world. When you know how foreclosure in MN works… it arms you with the knowledge you’ll require, to make sure you navigate it well and come out the other end in the best shape possible.
The Basic Stages of A Foreclosure
Foreclosure works differently in different states around the country. As such, it’s important to do a little bit more research into your state’s specific foreclosure structure if you’d like to understand it better and find effective solutions to combat foreclosure that will work well in your situation.
The two main ways different states use to foreclose upon a property are judicial sale or power of sale. In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices warning lenders of overdue payments.
If you’d like to learn more about these two variants of the foreclosure process, read on. However, if you live in Minneapolis MN and would like to know what the foreclosure process in the state of Minnesota looks like specifically, you should connect with us by calling (612) 351-2384. We’ll be happy to walk you through all the most important details.
Types of Foreclosure
Under Judicial Foreclosure:
- Your mortgage lender must file suit through the courts.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to the court and avoid foreclosure (sometimes, this can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff will serve an eviction notice that will force you to vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment – although the process may be subject to judicial review, the courts may not typically be involved.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice of this must be given in advance).
*Please Note: Anyone who has an interest in the property must be notified during either type of foreclosure. For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds. Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale. Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower. Here’s a great resource that lists the state-by-state deficiency judgment laws, since every state differs.
Generally, it’s best to avoid a foreclosure auction. Instead, you should consider calling up the bank to negotiate discounts on the amount owed. This could potentially help you avoid a possible foreclosure. Alternatively, you could turn to an experienced cash home buying company like FastPath Home Buyers. At FastPath, we can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you’re facing a foreclosure, you don’t need to go it alone. Instead, you should consider contact FastPath Home Buyers and let us help you. Here at FastPath Home Buyers, we buy houses for cash in Minneapolis, and its surrounding areas. If you’re facing a foreclosure, we go a step further by making sure that we do whatever we can to help you step out of your tough situation. If you’d like to sell your house during foreclosure, we’d be happy to buy it and take over your loan. You’ll also get to sell your homes “as-is” (no repairs, cleaning, or updates).
Contact us now by calling (612) 351-2384, filling out the short form below to get a cash offer today.