Redemption of Mortgage Foreclosed Property
Pursuant to Minnesota Statutes, most properties sold in a mortgage foreclosure action can be redeemed by the mortgagor. The published Notice of Mortgage Foreclosure Sale usually contains a paragraph indicating the length of the redemption period. In most cases this is six months. Minnesota Statutes Chapters 580 to 582 regulate these redemptions. However, some mortgage foreclosures are subject to federal regulations, in which case there is no redemption period.
A Certificate of Redemption can be obtained from the Sheriff's Office of the county in which the foreclosure occurred or from the mortgagee (lending institution).
Redemption by Mortgagor (Recorded Fee Owner)
Mortgagors wishing to obtain a Certificate of Redemption from the Sheriff's Office should call 763-324-5044 and request a Redemption Payoff Information Sheet. You can also download the information sheet in Adobe Acrobat format.
It is imperative that you contact the Sheriff's Office at least 7 days prior to the anticipated redemption to confirm your intent to redeem and to obtain updated payoff information. This additional time is required for research of the recorded documents and preparation of the certificate. It will also allow time to contact the redeeming party if additional data or documents are required.
The amount of the redemption is determined by the following:
- Amount bid at the foreclosure sale.
- Interest accruing from the date of sale to the date of redemption. (This is computed at the rate of interest on the mortgage.)
- Additional amounts paid by the purchaser at the foreclosure sale. These amounts may include insurance, taxes, assessments, etc. The purchaser must present an affidavit of additional amount of redemption to the sheriff and record it with the County Recorder / Register of Titles within the listed redemption period in order to collect those amounts as part of the redemption.
Payment of the redemption amount must be tendered to the Sheriff's Office in cash or certified funds made payable to the Anoka County Sheriff's Office. No other type of funds will be accepted.
Redemption by Other Parties
After the normal redemption period has expired, redemptions may be made by another party other than the mortgagor. These may include persons who have obtained any of the following:
- Mechanics' Lien filed against the property.
- Judgment against the mortgagor.
- Mortgage against the property other the foreclosed mortgage.
- Any other valid lien existing against the property.
A redemption by other parties has some specific legal requirements. It is recommended that person interested in this type of redemption consult an attorney.
Fees for redemption are established by State Statute:
- Redemption Preparation Fee for Owner / Mortgagors- $250
- Redemption Preparation Fee for Lien, Judgment, Second Mortgage Holders- $250
- Record redemption documents (lien holders, judgment holders, notice of intent to redeem) $100
The fee for redemption must be paid before a Certificate of Redemption is issued.