In Minnesota, homeowners can apply for a postponement of the sheriff’s sale scheduled in a foreclosure process. So long as the foreclosure process is the standard “foreclosure by advertisement” (i.e., the most common Minnesota foreclosure process for residential homestead property), the sheriff’s sale is at least several weeks away, and the documents are properly completed and recorded in the correct offices, a sheriff’s sale will be automatically postponed by five months. The trade-off to gaining these extra months prior to foreclosure is that the usual six-month redemption period following foreclosure will be reduced to five weeks due to the postponement. Homeowners may wish to postpone their sheriff’s sale so that they remain record owner of the property so that they may qualify for a refinance or mortgage modification.
Under the Minnesota statute, the homeowner is referred to as the “mortgagor” and the lender is referred to as the “mortgagee”.
Be sure to follow the directions closely and watch the timeline for postponement, as the documents must be processed in a specific window of time at least 15 days prior to the sheriff’s sale date.
The general requirements for postponement of sheriff’s sale under Minnesota Statute 580.07:
- Property must be classified as a homestead property.
- Property must consist of one to four dwelling units.
- Property is being foreclosed under a “foreclosure by advertisement” process having a six month redemption period under Minn. Stat. 580.23, subd 1.
- Homeowner completes a notarized Affidavit of Postponement (see link below) and has it recorded at the county’s recorder office at least 15 days prior to the date scheduled for the sheriff’s sale. Be sure to keep a copy for the next step.
- Homeowner files by mail or delivers in-person a copy of the recorded Affidavit of Postponement along with a copy of the Notice of Mortgage Foreclosure Sale to the county sheriff’s office at least 15 days prior to the sale date, along with the service fee. Note that the Notice of Mortgage Foreclosure Sale must be attached to the affidavit.
- Deliver to the attorney/law firm conducting the mortgage foreclosure a copy of the recorded affidavit at the same time that the Affidavit is delivered to the sheriff’s office.
Resources for more information:
- Minn. Stat. 580.07, Subd. 2 “Postponement by Mortgagor or Owner”: https://www.revisor.mn.gov/statutes/?id=580.07
- Affidavit of Postponement: http://www.commerce.state.mn.us/UCB/60.8.1.pdf
- Hennepin County Recorder/Registrar of Titles, Phone: 612-348-5139
- Hennepin County Sheriff’s Office, Phone: 612-348-3730
- Ramsey County Sheriff’s Office, Civil Process Unit, Phone: 651-266-9330
Lynn Wartchow is the founding attorney of Wartchow Law Office located in Edina, MN and represents individual consumer and business bankruptcy clients in the Minneapolis / St. Paul and greater Twin Cities metro area in Chapter 7, Chapter 13 and Chapter 11 bankruptcy proceedings filed in the Bankruptcy Court for the District of Minnesota.