• Services
  • Mortgage Foreclosure Prevention

Minnesota’s Foreclosure Process

When a payment is missed this process begins

  • Lender calls and sends a letter stating a payment was missed.
  • Homeowner receives Default and Intent to Foreclose Notice.
  • Homeowner receives Preforeclosure Notice.
  • The account is given to a foreclosure attorney and legal fees can begin accruing.

Sheriff’s Sale scheduled by the attorney

Redemption period follows the Sheriff’s Sale

  • Typically 6 months (12 months if agricultural).
  • Shortened to 5 weeks if property is abandoned or Sheriff’s Sale was postponed by homeowner.
  • Homeowners may stay in their home during the redemption period.
  • To redeem and keep the property, homeowners must pay off Sheriff’s Sale price plus interest and fees.
  • At the end of the redemption period homeowners must vacate or face eviction.
  • See the entire foreclosure timeline on a calendar

Options for keeping your home and avoiding foreclosure

Here are the “workout” options your lender may offer

  • Reinstatement: You pay what you owe in missed payments plus fees by a specific date.
  • Repayment plan: You and your lender workout a monthly payment plan that lets you catch up on past due payments.
  • Forbearance: An agreement to temporarily change or suspend payments. Forbearance must be combined with a future payment plan to prevent foreclosure.
  • Loan Modification: A change to the interest rate or length of your mortgage, resulting in a new monthly payment. A forbearance or trial period may be required by the lender.
  • Partial Claim or Advance Claim: If your mortgage is insured, you may qualify for a low-interest or interest‐free loan to bring your loan current through the insurer (FHA or private mortgage insurance).  This loan may have small monthly payments, or it may be repaid when you pay off your first mortgage or sell your home.
  • Making Home Affordable: A federal government program to help with refinancing or loan modifications. Visit www.makinghomeaffordable.gov for details.

Options for moving out and avoiding foreclosure

Pre‐Foreclosure Sale or Short Sale: If you owe more on the home than its value, your lender may agree to accept less than what is owed on the mortgage, allowing a “short” sale. Typically you would need a 3‐6 month period for your real estate agent to sell the house to a qualified buyer at a price agreed upon by the lender.

Deed‐in‐lieu: A deed‐in-lieu of foreclosure is an option where your lender forgives the debt you owe if you sign over (give back) the property.  Typically you would first have to try to sell the home for 90 days before the lender would consider this. If you have a second mortgage or judgment on the property, a deed‐in‐lieu may not be an option.

How we help you

You’ll work directly with a Mortgage Foreclosure Prevention Counselor

  • To determine if staying in your home is realistic
  • To create a household budget
  • To learn about your rights, the foreclosure process, and how to communicate with your lender
  • To create a Plan of Action for regaining housing stability by actively working with your lender and helping you save money for mortgage payments
  • To assist you with guidance as you explore possible solutions

Other things to consider

  • In some cases, selling your home will be considered as a way to prevent foreclosure.
  • Referrals to other community resources will be provided for free.

Contact Us

Call 651-207-1700 ext 3 to speak with a Mortgage Foreclosure Prevention representative before visiting our offices.

Our two offices

  • 1954 University Avenue West, St. Paul , MN 55104
  • 2100 Plymouth Avenue North, Minneapolis, MN 55411

About us

Twin Cities Habitat for Humanity Mortgage Foreclosure Prevention Program

  • We work with Minneapolis homeowners at risk of losing their home because of missed mortgage payments, property taxes payments or homeowner association dues.
  • We are able to prevent foreclosure for about 60% of our clients.
  • We’ve worked with more than 5,000 homeowners since 1993.
  • Homeowners work with a counselor to determine if a home can be saved and what the best course of action is for each individual’s situation.

Where the money goes

Twin Cities Habitat for Humanity strives to do the most good with every single dollar entrusted to us. Rest assured that a gift to support our mission creates an immediate and significant impact for the families and communities we partner with.

90% Programs & Services, 7.7% fundraising, 2.3% Administration

Every $1 you donate results in almost $2 of economic activity in our community.

Twin Cities Habitat for Humanity is a 501 (c)(3) non-profit recognized by the IRS. Tax ID Number: 36-3363171