Minnesota Foreclosure Lawyer

If you are in Minnesota and need advice regarding a home foreclosure you are facing this blog will provided some basic foreclosure information for the Minnesota. Most clients facing home foreclosure are worried about what will happen to them if they cannot afford to make their mortgage payment and choose to walk away from their home. The answer depends upon how many mortgages you have, the lender who holds those mortgages, and the process used by the lender to foreclose on your property.
The first issue is how many mortgages you have on your home, this will determine how to proceed with your foreclosure. If you only have one mortgage on your home, the lender will typically foreclose by advertisement, and then not be able to seek a deficiency balance for the mortgage. If you only have one mortgage in Minnesota you are generally in luck, since more than likely they will not pursue a deficiency balance against you for the amount owed after the home sells. This is not always the case since the lender could foreclose by Judicial Action, which means they would be able to pursue you for the difference between what you owe and what the home sells for. In my experience this type of foreclosure is rare in Minnesota, but does happen. It is important to have someone review the foreclosure documents to verify what type of foreclosure process your lender is using. If they are foreclosing by judicial action you should consult with an attorney to determine what your rights are and how to proceed.
If you have a first and a 2nd mortgage on your home, you could be at more risk if the home goes into foreclosure. The previous paragraph discussed how the lender typically forecloses a first mortgage, but does not discuss how they deal with a second mortgage. I have been seeing more cases recently where the 2nd mortgage holder does not take part in the sheriffs sale, and is instead pursuing the debtor directly on the note for the full balance owed. In some cases this can result in a large balance owed for the person whose home has gone into foreclosure. I have had many clients who filed bankruptcy because of this large deficiency, and a few clients who have been able to settle the debt. Each way has advantages and disadvantages but if you are in this situation you should speak with a lawyer to determine exactly what your situation entails, to make the best possible decision going forward.
Your lender makes a big difference in the foreclosure process, since each lender handles foreclosures a bit differently. They also vary in how the process they use for each individual. If you are unsure how your foreclosure is being handled you should contact an experienced lawyer to help you through the foreclosure. In many cases this will provide peace of mind when you are going through the process, to make sure you do not end up with a big deficiency balance. In some cases a foreclosure may actually be the best course of action for some individuals. The reason is that in many cases the home is not affordable, and the client would be better off renting a home for a few years. If you are thinking about letting your home go into foreclosure call our office at 952-294-0144.