MN Foreclosure Law Update: Postponing the Sheriff's Sale

Effective June 15, 2009, Minnesota state law allows a homeowner to delay the sheriff’s sale on their foreclosed property. If a homeowner is facing foreclosure and a sheriff’s sale date has been set, the filing of an affidavit postpones the sale date by five months. This temporary delay allows the homeowner additional time in which to work with their lender for a possible loan modification; more time to short-sale the property; or, more time to catch up on the payments to make the loan current. Postponement can only be done once regardless of whether the homeowner brings the mortgage current or not. In addition, the lender and the attorney conducting the foreclosure are not required to publish notice or serve the homeowner with additional information about the change in the Sheriff’s Sale or the date the redemption period ends.
 
While the postponement of the sheriff’s sale does allow a homeowner five months in which to bring their loan current, the redemption period is shortened from six months to five weeks. This means that in order to retain the property, the homeowner must, within five weeks of the sheriff’s sale, payoff the bid amount. If the homeowner is unable to bring the mortgage current or redeem the mortgage, the homeowner must vacate the property at the end of the five week redemption period. 
 
Another critical component of the law is that there is only a small window of time in which to postpone the sheriff’s sale. From the date of the first sheriff’s publication notice and at least 15 days prior to the sheriff’s sale date, the homeowner is required to:
 
1)       Complete and have notarized four copies of the required affidavit and attach to each a copy the Notice of Mortgage Foreclosure Sale
2)       Record the affidavit at the county recorder or registrar of titles where the mortgage was recorded (recording fees are required and additional fees may apply as well)
3)      File with the sheriff conducting the sale a copy of the affidavit showing the date and office in which it was recorded
4)      Deliver to the attorney conducting the foreclosure a copy of the affidavit showing the date and office in which it was recorded
5)      Confirm receipt of the copies and the actual new sale date with the sheriff’s office and foreclosure attorney.
 
By David Monroy, Kristi Weikel and Julie Kellen