Mortgage foreclosures are legal actions taken to foreclose upon real estate, as opposed to personal property. Minnesota State Statutes Chapters 580-582 address the subject of foreclosures.
Mortgage Foreclosure by Advertisement
This is the most common type of foreclosure action. It is actually based on some default in the terms of the mortgage. Generally, an attorney hired to conduct the foreclosure will prepare the appropriate Notice of Mortgage Foreclosure Sale, arrange for 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. Questions regarding a sale or arrangements to reinstate a mortgage should be directed to the attorney preparing the sale. Their telephone number is published with the notice of sale.
Mortgage Foreclosure by Action
These sales are conducted pursuant to a direct order from a District Court Judge ordering the Sheriff to sell a specific parcel of real property.
Notices for such sales are prepared by the plaintiff's attorney, similar to the Mortgage Foreclosure by Advertisement. 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. A posting in three public places as well as a publication in the county's legal newspaper is required by law. The Sheriff's Office posts such notices outside the entrance to its lobby; in the lobby at the Anoka County Government Center; and in the city hall of the city or town in which the property to be sold is located.
- 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 a.m. in the Sheriff's Office lobby. The mortgage company's or plaintiff's attorney will open the bid with the exact amount due at the time of the sale.
- Following this bid other bidders are given an opportunity to bid. A successful bidder must have cash or certified funds (payable to the Anoka County Sheriff) 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 foreclosures sales are subject to a redemption period (usually six months). The length of the redemption period is noted in the sale notice.
Bidding on a Mortgaged Foreclosed Property
Buyer must present cash or certified funds at the time of the sale. No approval letters or request for additional time to obtain monies will be accepted at the time of the bid.