In Minnesota, a court foreclosure begins when a lender notifies the borrower of the default. The lender then files a court action against the borrower. If the court rules against the borrower, a sale is scheduled.
The majority of Minnesota foreclosures are handled out of court through a power-of-sale clause contained in the mortgage. Under most mortgages, a lender must mail a default notice to the borrower before scheduling the sale.
With both types of foreclosure proceedings, the borrower can stop the foreclosure any time before the foreclosure sale by paying the default amount, plus fees and allowable costs.
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