The Minnesota foreclosure process begins when a borrower misses their monthly payment to the bank on their home loan. When this occurs the bank follows the necessary and legal procedures to recover whatever funds they can out of the value of the property and to pay for as much of the loan they gave to the borrower as possible.
The first thing that occurs when someone misses one or two house payments is the bank will file with the courts a legal action called a notice of default. This action will announce to the public that the person has missed their monthly payment and it can be embarrassing for some people. This is public information and you cannot avoid having the information printed in the local newspaper.
The bank will do what they can do contact you and work with you to get caught up with the monthly house payments during the Minnesota foreclosure process. You will have about 90 days to work with the bank and come up with some type of plan. The bank may ask you to try and sell the home to pay for the home loan you have with them. If you don’t have any luck selling the home then the bank will then initiate an intent to sell the property at a public auction. In most cases, you will receive a 90 day notice of the date the auction will take place.
The public auction is the final step of the Minnesota foreclosure process. This is open to the public and the home will be sold to the highest bidder that has a down payment. Once a home goes to a public auction, if people are still living inside of it they will be removed by the sheriff’s department. It can take up to one year for your home to go to auction but if you take this long to get the money together to save your home it may be too late.