The state encourages you to become informed about your options in foreclosure before entering into any agreements with anyone in connection with the foreclosure of your home. There are government agencies and nonprofit organizations that you may contact for helpful information about the foreclosure process. For the name and telephone number of an organization near you please call the Minnesota Housing Finance Agency (MHFA) at (insert telephone number). The state does not guarantee the advice of these agencies.

Do not delay dealing with the foreclosure because your options may become more limited as time passes

A judicial foreclosure is a legal process that involves the district court in the county where the property is located. It is essentially a lawsuit filed by the mortgage holder to obtain a court order to foreclose. The action is called a Lis Pendens This is used when there is no power of sale present in the mortgage or deed of trust. If the homeowner does not respond to or challenge the Lis Pendens, then the court can rule against the homeowner and schedule a foreclosure sale of their property.

In most cases, after the court orders a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

A non-judicial process of foreclosure is an administrative remedy based on contract. This is the most common type of foreclosure. It may be implemented when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is a provision spelled out in the deed of trust or mortgage agreement where the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Representing banks, Mortgage lenders and Individuals going through foreclosure