Foreclosure in Minnesota: process, timeline and your rights

Is foreclosure judicial or non-judicial?

Both exist. A lender may foreclose by advertisement (chapter 580), which needs no court case, or by action (chapter 581), which goes through a court. Foreclosure by advertisement is the one most homeowners face, and the sale itself is made by the county sheriff (§ 580.06).

Before a lender can foreclose by advertisement, the statute requires, among other things, that the mortgage is in default, that no lawsuit is pending on the debt, and that the mortgage and its assignments are recorded (§ 580.02).

What is the timeline, step by step?

Counting only the statutory minimums, the published notice runs six weeks and the redemption period six months, so about eight months pass between first publication and the end of redemption. A postponement, a bankruptcy or the lender’s own delays can add time. The notice must also state the date by which an owner-occupant of a single-family home must vacate, at 11:59 p.m. (§ 580.04).

You can stop the process before the sale by reinstating the mortgage. You pay the amount in default, plus interest, insurance, delinquent taxes, publication and service costs and limited attorney fees (§ 580.30). The lender must tell you the amount within three days of a request, and the figure holds for seven days or until the sale, whichever comes first.

Can the owner postpone the sale?

Yes, in some cases. If the property is a homestead with one to four dwelling units, the owner can record a sworn affidavit at least 15 days before the sale and file it with the sheriff. That postpones the sale by about five months after the original date, if the usual redemption period is six months. In exchange, the redemption period after the sale drops to five weeks (§ 580.07, subd. 2).

A 2026 law changed this right (Laws 2026, chapter 51). The governor signed it on April 21, 2026, and it took effect the next day. It applies to foreclosures whose notice of pendency was recorded on or after that date. The right may now be used only once during each foreclosure proceeding, and a deceased owner’s personal representative or heir may use it.

What is the right of redemption?

After the sale, the former owner can buy the home back by paying the sale price plus interest at the rate in the sheriff’s certificate, or 6% a year if none is stated, and certain other sums (§ 580.23, subd. 1). The usual period is six months. It can be 12 months in cases listed in subdivision 2, such as parcels over 40 acres and reverse mortgages. It is five weeks if a court finds the home abandoned under § 582.032.

Lienholders junior to the foreclosed mortgage may redeem only after the owner’s period ends, within 14 days and in order of priority (§ 580.24). In a foreclosure by action, redemption runs from the date of the court’s order confirming the sale (§ 581.10).

Can the lender get a deficiency judgment?

It depends on the type of foreclosure. A lender may seek a deficiency judgment if the sale brings less than the debt, but not when a foreclosure by advertisement has a six-month or five-week redemption period (§ 582.30, subd. 1-2). Judicial foreclosure under chapter 581 does not carry that bar. The judgment may not exceed the difference between the sale proceeds, less costs, and the amount owed.

Chapter 582 sets special rules for farm property.

What help exists for homeowners in default?

• Counseling. The pre-foreclosure notice must connect you with a nonprofit counseling agency approved or funded by Minnesota Housing or HUD (§ 580.021). Minnesota Housing also points owners to its list of foreclosure prevention advisors.
• Your servicer. Minnesota Housing advises contacting the servicer as soon as possible. Find yours through the Consumer Financial Protection Bureau if you do not know it.
• Federal loss mitigation rules. If a servicer receives a complete application more than 37 days before a sale, it must evaluate it within 30 days. Once the application is complete, it cannot move for judgment, order of sale or conduct the sale unless the borrower is denied, rejects the options or defaults on an agreement (12 CFR 1024.41(c), (g)).

For the costs of selling or buying a foreclosed home, see closing costs in Minnesota. A licensed attorney can advise on your own case.