Mortgage Foreclosures and
Redemptions
For information about mortgage foreclosures, call Stephanie at 952-496-8309.
Mortgage Foreclosures are legal actions taken to foreclose upon real estate. Minnesota Statutes pertaining to mortgage foreclosures are MN Statutes Chapters 580 – 582.
Mortgage Foreclosure by Advertisement
This is the most common type of foreclosure action. It is usually based upon some default in the terms of the mortgage.
The attorney hired to conduct the foreclosure will prepare the appropriate Notice of Mortgage Foreclosure Sale, arrange for the service and publication of the notice and have the Sheriff’s Office conduct the sale.
Some attorneys utilize the Sheriff’s Office to serve the notices while others only notify the Sheriff’s Office of the sale. Since attorneys often do not involve the Sheriff’s Office until the day of the sale, information may not be available if you call the Civil Unit.
Any questions regarding a sale or arrangements to reinstate a mortgage should be directed to the attorney preparing the sale. Their telephone number is usually published with the Notice of Sale.
Mortgage Foreclosure by Action
These sales are conducted pursuant to a direct Order from a District Court Judge for the Sheriff to sell a specific parcel of real property.
The notices are prepared by the plaintiff’s attorney, similar to the Mortgage Foreclosure by Advertisement, or may be prepared by the Sheriff. However, the Sheriff or a deputy will sign the Notice of Sale. Service of the Notice of Sale is usually done by the Sheriff’s Office.
The Scott County Sheriff’s Office does not provide a list of mortgage foreclosure sales. They are posted in local Scott County newspapers. Sheriff’s sales by Judgment Decree are posted in 3 public places. If you would like to view past sales, visit Scott County Land Records by clicking here.
Postponement of Foreclosure Sale
Effective June 15, 2009, Minnesota state law allows you to delay the foreclosure sale (“Sheriff’s Sale”) of your home by five months. By postponing the Sheriff’s Sale, it gives you five more months to bring your mortgage current. It also reduces the redemption period to five weeks. During the redemption period, you must pay off the amount bid at the Sheriff’s Sale to retain ownership of the property. Generally, this is about equal to the amount owed on the mortgage. The new Sheriff’s Sale date will be the first day that is not a Saturday, Sunday or legal holiday and is five months after the originally scheduled Sheriff’s Sale.
To postpone a Sheriff’s Sale, the property must be classified as homestead and be one to four units. Also, the first publication of the Sheriff’s Sale must have occurred AND it must be at least 15 days before the scheduled Sheriff’s Sale.
To postpone a sale, you must complete all of the following steps:
1. Execute four (4) copies of the required affidavit, including having them notarized and attaching a copy of the Notice of Mortgage Foreclosure Sale to each.
2. Record affidavit at the county recorder or registrar of titles where the mortgage was recorded.
a. Note: fees are required for recording the affidavit; fees vary by county but expect about $45 - $50.
b. Get three copies stamped with the recording date and location (one for your records, the other for steps below.) Additional fees may apply; fees vary by county but expect about $2 per copy.
3. File a copy of the affidavit showing the date and office in which it was recorded with the sheriff conducting the sale. Include copy of the Notice of Mortgage Foreclosure Sale. Contact the Sheriff’s Office in your county to determine the process.
4. Deliver a copy of the affidavit showing the date and office in which it was recorded to the attorney conducting the foreclosure. Include copy of the Notice of Mortgage Foreclosure Sale. Contact the foreclosure attorney to determine acceptable method of deliver (in person, mail and/or fax.)
5. Confirm receipt of the copies and the actual new sale date with the Sheriff’s Office and the foreclosure attorney.
Other facts to know about postponing the Sheriff’s Sale:
• If you are unable to bring the mortgage current or redeem during the redemption period, you must vacate the home at the end of the five week redemption period.
• The lender and foreclosure attorney are not required to publish notice or serve you with additional information about the change in the Sheriff’s Sale or the date the redemption period ends.
• Postponement can only be done once, regardless of whether you bring the mortgage current or not.
Sale Procedure
In both types of Mortgage Foreclosure Sales, the sale is conducted by the Sheriff, or his designee, in an open bidding process. Sales are conducted Tuesdays and Thursdays at 10:00 AM in the lobby at the southwest entrance of the Law Enforcement Center at 301 S. Fuller St. in Shakopee. The mortgage company’s or plaintiff’s attorney will open the bid with the exact amount due at the time of the sale.
Following the bid, other bidders are given an opportunity to bid. A successful bidder must have CASH or CERTIFIED FUNDS (payable to the Scott County Sheriff’s Office) available to pay the Sheriff’s Office at the time of the sale.
The successful bidder will receive a Sheriff’s Certificate of Sale that lists the name of the purchaser and the amount of the purchase. The Certificate of sale is prepared by the attorney and includes documentation proving that all statutory requirements have been completed.
All mortgage foreclosure sales are subject to a redemption period, usually 6 or 12 months. The length of the redemption period is noted in the sale notice.
If you are facing foreclosure, please follow the link to learn about “Equity Stripping”.
The Minnesota Housing Finance Agency
offers information about mortgage foreclosures.
You can also contact the Minnesota Home Ownership Center at 651-659-9336 or 8660462-6466 or www.hocmn.org
Foreclosure: Redemption
Pursuant to Minnesota Statutes, most properties sold in a Mortgage Foreclosure action can be redeemed by the mortgagor. The published Notice of Mortgage Foreclosure sale usually contains a paragraph indicating the length of the redemption period. In most cases, this is 6 months. However, some Mortgage Foreclosures are subject to federal regulations, in which case there is no redemption period.
A Certificate of Redemption can be obtained from the Sheriff’s Office of the county in which the foreclosure occurred or from the Mortgagee (lending institution).
Redemption by Mortgagor (Recorded Fee Owner)
If a mortgagor wishes to obtain a Certificate of Redemption from the Sheriff’s Office, they should download the Redemption Payoff Request Form or they can call 952-496-8320 and request a form. It is imperative that you call the Civil Unit at 952-496-8320 at least 48 hours prior to the anticipated redemption to confirm your intent to redeem and to obtain updated payoff information. This additional time is required for research of the recorded documents and preparation of the certificate. It will also allow time to contact the redeeming party if additional date or documents are required.
The amount of the redemption is determined by the following:
- Amount of the bid at the foreclosure sale,
- Interest accruing from the date of sale to the date of redemption. (This is computed at the rate of interest on the mortgage),
- Additional amounts paid by the purchaser at the foreclosure sale. These amounts may include insurance, taxes, assessments, etc. The purchaser must present an Affidavit of additional amount of redemption to the Sheriff and record it with the County Recorder/Register of titles within the listed redemption period in order to collect those amounts as part of the redemption.
Payment of the redemption amount must be tendered to the Sheriff’s Office in cash or certified funds made payable to the Scott County Sheriff’s Office. No other type of funds will be accepted.
Redemption by Other Parties
After the normal redemption period has expired, redemptions may be made by persons other than the mortgager. These may include persons who hold or have obtained junior liens:
- Mechanic’s Lien filed against the property,
- Judgment against the mortgagor,
- Mortgage against the property other than the foreclosed mortgage,
- Other valid lien existing against the property.
Redemption by other parties has some specific legal requirements. It is recommended that person interested in this type of redemption consult with an attorney.
Minnesota Statutes 580.24 and 580.25
give the requirements for redemptions by junior lien holders. As of January 1, 2005, copies of all redemption documents must be filed with the Sheriff as soon as they have been filed with the recorder or registrar.
Redemption Fees
The fee for redemption must be paid before a Certificate of Redemption is issued. For the fee schedule, click here.