So what is a foreclosure? A foreclosure is to shut out or extinguish a mortgagor’s right of redeeming a mortgaged property. It’s a method or process which terminates any and all rights of the homeowner covered by the mortgage. The property in question becomes the absolute 100% property of the lending facility. With the numbers of Minneapolis MN foreclosures growing weekly, daily and hourly in the region homeowners need more help than ever.
Foreclosure Process In MN
Now that we know the answer to “what is a Minnesota foreclosure?” Let’s ask, how does the foreclosure process work in Minnesota? It begins by the homeowner failing to make good on payments due to the lender on the property per the original agreement known as the note. This happens for several reasons, unemployment, medical, divorce or loss of job to name a few. Foreclosure proceedings will usually begin with a formal demand of payment which may come in a certified letter along with a follow up phone call. The letter of notice is referred to as a Notice of Default or (NOD). Depending on your state the lender will do this after 3 months of non payment.
Minnesota Redemption Period
The foreclosure redemption in Minneapolis is the time period a borrower may reclaim the title and possession of the property by making good on the loan. The redemption period in Minnesota begins after the sheriff sale has been completed. You will typically have 6 month’s to redeem yourself with the lender and make good on the note by paying it off in full.
Foreclosures For Sale In Minneapolis
Many investors and first time home buyers are looking for foreclosures for sale in Minneapolis, Minnesota. If you’re looking to buy foreclosures keep a few things in mind.
- You may want to use the services of a Realtor as many of the best foreclosures for sale sell rather quickly.
- You will want to be pre-approved and ready to go unless you are paying cash as most foreclosures are owned by banks and they will not look at offers not associated with a pre-approval letter.
- Offers are still subject to bank approval. They will not take as long as a short sale property to get a response; however, foreclosure homes still take a few days to get through the proper chains at most banks.
We have many foreclosure homes available in Minnesota for investors and first time home buyers. Simply give us a call at 612-282-SOLD (7653) or contact me with your area criteria and I will send you -at no obligation- a free list of foreclosures for sale in Minneapolis that fit your needs.
If you are a homeowner and find yourself in times of hardship, we may have options for you such as a short sale or refinance terms. To find out how we can help you get out of your current situation with the least negative affect contact us below.
Foreclosure Options Minnesota
- Home Affordable Modification Program (HAMP): HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.
- Principal Reduction Alternative (PRA): PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.
- Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.
- Home Affordable Refinance Program (HARP): If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage.
- The Making Home Affordable © (MHA) Program is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy. Homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for those homeowners for whom home-ownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth. Please read the following program summaries to determine which program options may be best suited for your particular circumstances.
Whether you’re behind several house payments or just behind one, our Minneapolis foreclosure experts may be able to help you avoid foreclosure. Contact us below today for more information to avoid foreclosure and discuss the possibility of a short sale. Remember, this is what we do – don’t loose another nights sleep without finding out your options, call us now 612-282-SOLD.