Foreclosures
Introduction
News of home foreclosures, in Minnesota and across the country, has permeated from media outlets with increasing frequency. Once a property is designated a foreclosure, the typical redemption period is six months. During this period, the property is essentially "on hold" until the owner does or does not redeem it. Once the outcome is known, either the owner or the newly controlling mortgage company (or other party) can move forward. Please note individual circumstances may vary.
The foreclosure process begins when the homeowner fails to make payments of the money due on the mortgage at the appointed time. Several factors contribute to a failure to make payments, which include: unemployment, divorce, medical challenges, terms of the loan, sick of property management and even death.
The Minnesota Home Ownership Center has created a timeline of the foreclosure process.
Information for Homeowners
For most homeowners, foreclosure is not a likely outcome of homeownership. However, unpredictable and unplanned circumstances arise that place individuals in financial jeopardy.
Do you have an adjustable rate mortgage? Have your payments increased to a level that you cannot afford? If you find that you are having a difficult time meeting your homeownership obligations, it is in your best interest to notify your lender early on as the lender may be willing to create a payment plan or change existing terms.
Homeowners should not wait until they have fallen behind on mortgage payments before asking for help. The longer homeowners wait, the less options will be available.
Homeowner Resources
Below are organizations and resources that can provide trusted referrals, and in some cases, financial assistance to families facing foreclosure. Homeowners should be cautioned to use recognized and established resources that will help analyze your situation, identify options for preventing foreclosure and help you develop a plan to get back on track.
Mortgage Foreclosure: Homeowners FAQs →
Mortgage Foreclosure: Tips for Talking with Your Lender Brochure →
Mortgage Foreclosure: Understanding Workout Options →
Minnesota Home Ownership Center
1000 Payne Avenue, Suite 200
St. Paul, MN 55130
651.659.9336
Lutheran Social Services
LSS Financial Counseling
424 W. Superior St., Suite 600
Duluth, MN 55802
1.800.777.7419
Minnesota Housing Finance Agency
400 Sibley St., Suite 300
St. Paul, MN 55101-1998
651.296.7608 or 1.800.657.3769 General information
Children's Home Society and Family Services Foreclosure Program
1711 W. County Rd. B
Suite 200 S
Roseville, MN 55113
651.222.0311
ACORN Housing
757 Raymond Ave., Suite 200
St. Paul, MN 55114
651.203.0008
Beware - there are many scam artists offer to "rescue" homeowners from foreclosure by "paying your mortgage." In reality, they are looking for a quick profit as they evict you and your family, pocket mortgage payments meant for the lender and sell your home on the open market. Anyone can become a victim.
Play it safe, visit the National Foundation for Credit Counseling at Housing Help Now or call 1.866.462.6466 for more information about foreclosure counseling.
Information for Renters
The mortgage industry crisis also preys on renters. Renters can be forced out of their rental home or apartment, with little or no warning.
Many renters have no idea that their rental home or building has been foreclosed on and they continue to pay rent to the former owner, who often pockets the money. The former owner stops maintaining the home or unit, and the new owner, usually the bank, never makes repairs or pays the delinquent utility bills. This course of action, or non-action, results in basic utilities being shut off and properties being condemned for lack of service or code violations. Many times renters are forced to leave a property in a matter of days, leaving them with few options.
What you should know if your landlord is foreclosed upon:
Foreclosure does not change the terms of your lease
You and your landlord must continue to follow the terms of your lease
You must keep paying rent unless you have a legal reason to withhold it
Your landlord must keep the property repaired
Utilities must be paid under the terms of your lease or under state law
Moving out of the property early might be a violation of your lease
Read your lease to see if it says anything about your rights if the property is in foreclosure
You and your landlord must still give legal notice to end your lease
Your landlord has six months after the sheriff's foreclosure sale to pay off the mortgage
If your landlord does not stop the foreclosure, there will be a new owner of the property
The new owner may have the legal right to ask you to move even if your lease is not over, but they must still give you a written notice stating they want you to leave
Renter Resources
Knowledge is power. Know your rights as a renter.
Mortgage Foreclosure: Renters FAQs →
Tenants and Foreclosures in Minnesota Brochure →
Southern MN Regional Legal Services (Ramsey County residents) - 651.222.4731
HOME Line - 866.866.3546
Law Help Minnesota
Affordable Rental Housing
MN Department of Revenue - You may be eligible for a property tax refund based on your household income and property taxes paid on your principal place of residence, even if you rent.
Play it safe, visit the National Foundation for Credit Counseling at www.HousingHelpNow.org or www.hocmn.org or call 1.866.462.6466 for more information about foreclosure counseling.
Foreclosure Sales
The Ramsey County Sheriff's Office does not provide a list of upcoming sales. The attorney for the mortgage company must publish a Notice of Foreclosure Sale in a qualified newspaper. For more details visit Ramsey County's Sheriff Foreclosure Sales.
Shoreview's Response to Foreclosure
Once a property is designated a foreclosure, the typical redemption period is six months. During this period, the property is essentially "on hold" until the owner does or does not redeem it. Once the outcome is known, either the owner or the newly controlling mortgage company (or other party) can move forward. Please note individual circumstances may vary.
Neighborhood Stabilization Program: A Collaborative Effort with Ramsey County
Shoreview and Ramsey County sought grant funding from the Minnesota Housing Finance Agency seeking federal grant funding to assist suburban communities where high concentration of foreclosures have been identified. For more information, visit Ramsey County.
Utility Shutoff
In accordance with Section 501.100 of the Shoreview Municipal Code, the City of Shoreview has the authority to shut off water service for the following reasons:
Water service is unpaid and the account is delinquent
Property is in foreclosure
Property is unoccupied
Property owners will receive a Water Shut Off Notice and must submit a request within 10 days of the notice requesting a hearing be held prior to the water shut off. Failure to request a hearing in writing to the City shall be deemed a waiver and that the water will be shut off on or around the date indicated in this notice.
A reconnection charge of $5.00 must be paid along with delinquent fees prior to the reconnection of water service to the property.
The City shall not be liable for any deficiency or failure to supply water to the property. No person, except an authorized City Employee shall turn on or off any water supply at the stop box without permission from the City.
If you have any questions regarding this policy, please call 651.490.4661.
Economic Development Authority
From a policy perspective, the Shoreview Economic Development Authority seeks to improve the economic well-being and quality of life for Shoreview by creating and/or retaining jobs and supporting economic growth.
Economic Development Authority →
Information for Neighbors of Foreclosed Properties
If the property becomes a nuisance during the redemption period and requires emergency maintenance - water damage caused by frozen pipes, for instance - the mortgage company may enter the property to address the problem to mitigate its future financial loss. Also during this time, the owner may choose to rent out the property, a move that would require securing a rental license from the city. If a foreclosed property in your neighborhood appears to be occupied or is vacant and unsecured, please notify the Shoreview Community Development Department at 651.490.4680.
Be a Good Neighbor
If you live next to a foreclosed property, protect your neighborhood by keeping an eye on the property. If there appears to be someone in the house and no vehicle in the driveway, call 9-1-1. For other suspicious activities call the Sheriff's Department at 651.484.3366.
Foreclosure Prevention
Don't Borrow Trouble Hotline
A hotline 612.312.2020 to offer families a safe place to call before they sign anything that puts their home at risk. Also visit www.dontborrowtroublemn.org.
Pre-Purchasing Counseling for New Homebuyers
The Minnesota Home Ownership Center provides pre-purchasing training to help new homebuyers.