Are you facing a foreclosure. Do you need help selling your house fast, in order to pay your debts. Are you running against the clock, with the threat of a foreclosure looming over your head, that promises to knock down your door any day know. If you are, consider selling your house to FastPath Home Buyers. Here at FastPath, we buy houses for cash in Minneapolis, and its surrounding areas. With FastPath, you get a fair all cash offer. Some companies may see that you are in a tricky situation, and try to take advantage. If your facing a foreclosure, we go a step further by making sure that we do whatever we can, in order to help you step out of your tough situation. If it means buying your house and taking over your loan, we are prepared to do it. You also get to sell your homes ” as-is” ( no repairs, cleaning or updates). Contact us now, by calling (612) 351-2384 or filling out a short form on this page, to get a cash offer today!
Understanding the foreclosure process in MN is an important step, when it comes to navigating through your own home foreclosure.
Before we dive in…
Understanding the Foreclosure Process in MN
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property, generally after the borrower stops making loan payments.
Foreclosure is no fun. But just know that 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
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two 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.
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).
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, call up the bank, or work with a reputable real estate firm like us at FastPath Home Buyers to help you negotiate discounts off the amount owed. This could potentially help you avoid a possible foreclosure.
Experienced investors 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 need to sell a property near Minneapolis, we can help you.
We buy houses in Minneapolis MN like yours from people who need to sell fast.
Give us a call anytime (612) 351-2384 or
fill out the form on this website today! >>
Another Foreclosure Resource For Minneapolis MN HomeOwners: