Foreclosure Litigation in Minnesota

What it means in Minnesota:
Foreclosure litigation in Minnesota involves court-supervised proceedings when a lender chooses to foreclose through a judicial process, rather than using non-judicial foreclosure by advertisement.

Key points:

• Minnesota allows both judicial and non-judicial foreclosure
• Judicial foreclosure is known as foreclosure by action
• Most foreclosures proceed non-judicially, but litigation may still arise

Minnesota-specific considerations:

• Non-judicial foreclosure by advertisement does not involve a court case
• A deficiency judgment is strictly prohibited if:
  • The lender forecloses non-judicially, and
  • the property carries a 6-month redemption period or a 5-week redemption period for abandoned property.
• If a lender chooses judicial foreclosure (foreclosure by action), a deficiency judgment may be pursued
• Judicial foreclosure cases are filed in Minnesota district courts
• Borrowers may raise defences and objections within the court proceeding
• Statutory notice and publication requirements apply in all foreclosure types