Redemption and Deficiency Judgments in Minnesota
Whether you can buy back your home after a foreclosure sale in Minnesota, and whether the lender can sue for what's still owed.
Short answer: Yes. After a sheriff's sale, the homeowner may redeem by paying the sale price plus interest at the mortgage rate (6% if no rate is stated in the certificate of sale) and certain other allowed amounts. Minn. Stat. §§ 580.23, 580.07, 580.041
| Redemption after the sale | Yes. After a sheriff's sale, the homeowner may redeem by paying the sale price plus interest at the mortgage rate (6% if no rate is stated in the certificate of sale) and certain other allowed amounts. The usual period is 6 months after the sale. It is 12 months in listed situations, including when the amount claimed due at the notice of sale was less than 66-2/3% of the original principal, for certain larger or agricultural parcels, for mortgages signed before July 1, 1967, and for reverse mortgages. It can be shortened to five weeks if the homeowner postpones the sale under § 580.07 or a court finds the property abandoned. The owner can stay in the home during the redemption period. |
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| Deficiency judgments | A deficiency judgment is not allowed when a mortgage is foreclosed by advertisement and the redemption period is 6 months or five weeks. Otherwise, a lender may get a deficiency judgment, limited to the difference between the sale proceeds (after expenses and costs) and the amount owed or the court judgment. For agricultural property, the lender must file a deficiency action within 90 days after the sale, and the deficiency is limited to the difference between the debt and the property's fair market value, determined by a jury unless waived. Source: Minn. Stat. § 582.30 |
More Minnesota foreclosure & homeowner law
- How Foreclosure Works in Minnesota
- HOA Liens and Foreclosure in Minnesota
- Getting Your Home Back After a Tax Sale in Minnesota
- All Minnesota foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in Minnesota?
Yes. After a sheriff's sale, the homeowner may redeem by paying the sale price plus interest at the mortgage rate (6% if no rate is stated in the certificate of sale) and certain other allowed amounts. The usual period is 6 months after the sale. It is 12 months in listed situations, including when the amount claimed due at the notice of sale was less than 66-2/3% of the original principal, for certain larger or agricultural parcels, for mortgages signed before July 1, 1967, and for reverse mortgages. It can be shortened to five weeks if the homeowner postpones the sale under § 580.07 or a court finds the property abandoned. The owner can stay in the home during the redemption period.
Can the lender come after you for the rest of the loan after foreclosure in Minnesota?
A deficiency judgment is not allowed when a mortgage is foreclosed by advertisement and the redemption period is 6 months or five weeks. Otherwise, a lender may get a deficiency judgment, limited to the difference between the sale proceeds (after expenses and costs) and the amount owed or the court judgment. For agricultural property, the lender must file a deficiency action within 90 days after the sale, and the deficiency is limited to the difference between the debt and the property's fair market value, determined by a jury unless waived.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.