If you are behind on your mortgage payments, the mortgage company is able to obtain possession of your home through a process called foreclosure. In Minnesota, a mortgage company has to follow procedures to make sure that it is done properly.
The most common process a mortgage company will take is a foreclosure by advertisement. You will first receive a letter from a law firm indicating the intent to begin the foreclosure process. This letter will include a number of contacts to provide for assistance and programs that may help in certain circumstances.
You will have at least a month later until you’ll receive a notice of foreclosure sale. That will provide you with a six-week notice period where the foreclosure must be advertised in a local publication, typically a newspaper. The notice will have the date of the pending sale that will be conducted by the sheriff in the county where the house is located.
It is always important to be in contact with the law firm conducting the sheriff sale to obtain the amount that must be paid to cure the default on the mortgage. You also can verify that the sheriff sale has not been postponed. Filing a bankruptcy before the sale occurs will act to stop it. Chapter 13 can be used to force the mortgage company to accept smaller payments of the arrears to allow you to get caught back up. You will be required to make the ongoing regular monthly mortgage payment while you are in Chapter 13.