Minneapolis foreclosure property sales present a great opportunity for an investor to purchase property at below market rate prices. As with many types of investments, it is important to conduct research in order to maximize the potential upsides and minimize any risks involved. While buying foreclosure property is not inherently risky, this type of purchase differs from traditional real estate purchases.
While Minnesota uses both judicial and non-judicial foreclosure processes, the majority of foreclosures are conducted out-of-court. The terms of the mortgage determine which form of foreclosure is used. Regardless of the type of foreclosure, the average length of the process spans about four months.
Process for Acquiring Minneapolis Foreclosure Properties for Sale
Pre-foreclosure begins when a lender contacts a borrower and informs them that they are in default on their loan. At this point, many borrowers are eager to sell their property in order to exit the foreclosure proceedings. When the lender intends to sell the property, they must publicize the sale for six weeks prior. During this period, the property will be part of aggregated foreclosure lists.
When buying foreclosure property in Minneapolis, the sale is usually held by the sheriff's department. This is unlike a HUD foreclosure in which the transaction is handled through real estate agents. Upon selection of the highest bidder, payment is immediate due in either cash or cashier's check. However, the original homeowner's redemption period typically spans six months but can also run as long as 12 months.
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