Mortgage Foreclosures & Redemptions

Mortgage Foreclosures are legal actions taken to foreclose upon real estate. Minnesota Statutes pertaining to mortgage foreclosures are Minnesota Statutes Chapters 580 – 582.

Mortgage Foreclosure by Advertisement
This is the most common type of foreclosure action. It is usually based upon some default in the terms of the mortgage. The attorney hired to conduct the foreclosure will prepare the appropriate Notice of Mortgage Foreclosure Sale, arrange for the 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. Since attorneys often do not involve the sheriff's office until the day of the sale, information may not be available if you call the Civil Process Division.

Any questions regarding a sale or arrangements to reinstate a mortgage should be directed to the attorney preparing the sale. Their telephone number is usually published with the Notice of Sale.

Mortgage Foreclosure by Action
These sales are conducted pursuant to a direct order from a District Court Judge for the sheriff to sell a specific parcel of real property. The notices are prepared by the plaintiff's attorney, similar to the Mortgage Foreclosure by Advertisement, or may be prepared by the sheriff. 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.

The Chisago County Sheriff's Office does not provide a list of mortgage foreclosure sales. They are posted in local Chisago County newspapers. Sheriff's sales by Judgment Decree are posted in three public places.

Sale Procedure
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 weekdays at 10 a.m. in the Sheriff's Office in the Chisago County Government Center. The mortgage company's or plaintiff's attorney will open the bid with the exact amount due at the time of the sale. Following the bid, other bidders are given an opportunity to bid. A successful bidder must have cash or certified funds (payable to the Chisago County Sheriff's Office) 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 foreclosure sales are subject to a redemption period, usually 6 or 12 months. The length of the redemption period is noted in the sale notice. If you are facing foreclosure, please follow the link to learn about Equity Stripping. The Minnesota Housing Finance Agency offers information about mortgage foreclosures.

Foreclosure: Redemption
Pursuant to Minnesota Statutes, most properties sold in a mortgage foreclosure action can be redeemed by the mortgagor. The published Notice of Mortgage Foreclosure sales usually contains a paragraph indicating the length of the redemption period. In most cases, this is 6 months. 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 in the county which the foreclosure occurred or from the mortgagee (lending institution).

Redemption by Mortgagor (Recorded Fee Owner)
If a mortgagor wishes to obtain a Certificate of Redemption from the Sheriff's Office, they should call 651-213-6307 and request a form. It is imperative that you call the Civil Process Division at 651-213-6307 at least 48 hours 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 date or documents are required.

The amount of the redemption is determined by the following:

  • Amount of the 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 Chisago 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 persons other than the mortgager. These may include persons who hold or have obtained junior liens:
  • Judgment against the mortgagor,
  • Mechanic's Lien filed against the property,
  • Mortgage against the property other than the foreclosed mortgage,
  • 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 with an attorney.

Minnesota Statutes 580.24 and 580.25 give the requirements for redemption by junior lien holders. As of January 1, 2005, copies of all redemption documents must be filed with the sheriff as soon as they have been filed with the County Recorder / Register of Titles.