1. What happens at a real estate foreclosure sale?
2. Who can bid at a foreclosure sale?
3. Does the foreclosing creditor need to bring cash to the foreclosure sale?...
QUESTIONS AND ANSWERS
1. What happens at a real estate foreclosure sale?
The sheriff of the county where the real estate is located reads the published Notice of Foreclosure Sale; solicits bids; and then issues to the highest bidder a Sheriff’s Certificate of Sale (if foreclosure by advertisement) or a Sheriff’s Report of Sale (if foreclosure by action).
2. Who can bid at a foreclosure sale?
Anyone. However, because of Minnesota’s redemption rules, it is rare for anyone other than the foreclosing creditor to bid at a foreclosure sale. In almost all cases, the highest bidder is the foreclosing creditor.
3. Does the foreclosing creditor need to bring cash to the foreclosure sale?
No. The foreclosing creditor may “credit bid” all or some of the debt secured by the mortgage. The mortgage debt is satisfied or partially satisfied by the amount of the foreclosing creditor’s bid. Accordingly, the foreclosing creditor should carefully consider the value of its collateral and other potential sources of recovery (including guarantors and other collateral) before attending the sale. Any other party who bids at the sheriff’s sale must bid with cash or certified funds.
Please see full publication below for more information.
