Foreclosure is a serious legal process that can result in homeowners and even renters losing their homes. In Minnesota, foreclosure laws are complex and vary depending on the type of foreclosure being pursued.

If you’re facing foreclosure or eviction due to foreclosure, a Minnesota real estate attorney can help you explore legal options to protect your home or your rights as a tenant.

The Foreclosure Process in Minnesota

Foreclosure by Advertisement (Most Common)

This is the fastest foreclosure method and doesn’t require court action. The lender must publish a notice of foreclosure in a local newspaper for six consecutive weeks and personally serve the homeowner at least four weeks before the sale. Homeowners typically have six months to redeem the property after the sale, though the redemption period can be shorter or longer depending on specific circumstances.

Foreclosure by Action (Less Common)

This is a court-supervised foreclosure, where the lender files a lawsuit against the homeowner.

The homeowner can contest the foreclosure in court and potentially negotiate a settlement.

This process takes longer and provides more legal opportunities to stop the foreclosure.



Both types of foreclosure result in the property being sold at a sheriff’s sale if the homeowner does not take action to stop it.

How Foreclosure Affects Landlords and Tenants

Foreclosure doesn’t just impact homeowners—it also affects landlords and tenants who are renting properties that go into foreclosure.

If you’re a landlord facing foreclosure, you could lose ownership of your rental property, which could disrupt your tenants’ living situation and impact your legal responsibilities. Foreclosure could result in the loss of rental income, legal disputes if tenants with leases demand compensation, and eviction proceedings initiated by the new property owner.

If you’re a renter living in a foreclosed property, you have legal rights and protections under both federal and Minnesota law. In most cases, tenants have at least 90 days before they can be forced to leave. If you have a fixed-term lease, you may be allowed to stay until the lease expires unless the new owner plans to use the property as their primary residence. The new property owner must also provide proper notice before starting the eviction process.

Ways to Stop Foreclosure in Minnesota

If you’re facing foreclosure, you still have options to protect your home and your financial future.

Work with Your Lender to Modify the Loan

Many lenders offer loan modification programs that adjust your mortgage terms to make payments more affordable. Options may include reducing the interest rate, extending the loan term, or adding missed payments to the total loan balance.

Apply for Mortgage Forbearance

Forbearance allows homeowners to pause or reduce mortgage payments temporarily. This can be helpful if you’re experiencing short-term financial hardship.

Refinance Your Loan

If you still have equity in your home, refinancing may help you secure a lower interest rate and reduce your monthly payments.

Sell Your Home Before Foreclosure

If you’re unable to make payments, selling the home before foreclosure can help you avoid damage to your credit. Options include a traditional home sale, or selling on the market to pay off your mortgage, or a short sale, where your lender agrees to accept less than what is owed.

File for Bankruptcy

Bankruptcy can provide temporary relief by halting the foreclosure process through an automatic stay. Chapter 13 bankruptcy allows homeowners to catch up on missed payments through a structured repayment plan, while Chapter 7 bankruptcy may discharge other debts, allowing you to focus on your mortgage.

Redeem the Property During the Redemption Period

Minnesota law provides a six-month redemption period after a sheriff’s sale. During this time, homeowners can buy back the property by paying off the foreclosure amount in full. This redemption may be shortened in some circumstances, like if a private buyer purchases the property and moves into it as their primary residence.

Seek Legal Assistance

Foreclosure laws can be complex, and lenders don’t always follow the law when pursuing foreclosure. If you believe your lender made a mistake, violated your rights or failed to offer foreclosure alternatives, you may have legal grounds to challenge the foreclosure in court.

Foreclosure and Tenant Rights: What Renters Need to Know

If you’re a tenant living in a foreclosed property, you may wonder if you can be forced to move. The answer depends on whether you have a written lease or are on a month-to-month agreement, whether the new owner intends to move in or continue renting, and whether your landlord properly informed you of the foreclosure.

What Tenants Can Do:

• Request written notice from the new property owner before taking any action.
  
  
• Continue paying rent unless otherwise instructed by the legal owner.
  
  
• Consult a Minnesota tenant rights attorney if you’re pressured to leave without proper legal notice.

Preventing Foreclosure Before It Starts

• Stay in contact with your lender. Many lenders are willing to negotiate if you communicate early about financial difficulties.
  
  
• Seek housing counseling. Minnesotans have access to free foreclosure counseling services that can help you explore options.
  
  
• Avoid foreclosure scams. Be wary of companies that promise to "save your home" for a fee. Only work with reputable attorneys and HUD-approved housing counselors.

Property Owners Looking for Legal Assistance During Foreclosure May Benefit From Consulting With an Attorney

Whether you’re a homeowner trying to save your home or a tenant unsure of your rights, consulting with a qualified Minneapolis–St. Paul attorney may be helpful. Speak with one of our lawyer referral counselors today by calling (612) 752-6699 and get connected with an experienced Minnesota foreclosure attorney.