Redemption of Mortgage Foreclosure Property

Pursuant to Minnesota Statutes, most properties sold in a mortgage foreclosure action can be regained by the mortgage owner. The published notice of mortgage foreclosure sale usually contains a paragraph indicating the length of the redemption period. In most cases this is 6 months. However, some mortgage foreclosures are subject to federal regulations in which cases there is no redemption period. These redemptions are regulated by Minnesota Statutes 580 through 582. A Certificate of Redemption can be obtained from the Sheriff's Office of the county in which the foreclosure occurred or from the mortgagee (lending institution).

Redemption by Mortgagor (Recorded Fee Owner)

A mortgagor wishes to obtain a Certificate of Redemption from the Sheriff's Office, they should call 320-693-5410 and request a Redemption Information Sheet. This must be returned to our office at least 48 hours prior to the anticipated time of redemption. This additional time is required for research of the recorded documents and preparation of the certificate. It will also allow time to contact the redeeming party if additional data or documents are required.

The amount of the redemption is determined by the following:

• Amount bid at the time of the sale
• Interest occurring from the date of the sale to the date of redemption (this is computed at a rate of interest on the mortgage)
• Additional amounts paid by the purchaser at the foreclosure sale, these amounts may include insurance, taxes, assessments, etc. The purchaser must present an Affidavit of Additional Amount of Redemption to the Sheriff and record it with the County Recorder within the listed redemption period in order to collect those amounts as part of the redemption.

Payment of the redemption amount must be tendered to the Sheriff's Office in cash or certified funds. No other types of funds will be accepted.

Redemption by Other Parties

After the normal redemption period has expired, redemption's may be made by persons other than the mortgagor. These may be based on the following:

• Mechanics' lien filed against the property
• Judgment against the mortgagor
• Mortgage against the property other than the foreclosed mortgage
• Any other valid lien existing against the property

A redemption by other parties has some specific legal requirements. It is recommended that the person interested in this type of redemption consult with an attorney.

Redemption Fees

Fees for redemption are established by the Meeker County Board of Commissioners.

• Redemption by mortgagor or other parties: $250

The fee for redemption must be paid before a Certificate of Redemption is issued.