Contact
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Phone:
612-414-6721
Scott/Dakota County
507-412-9474
Rice/Goodhue County
Lakeville, MN 55044
Email |
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Frequently Asked Questions
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Should I file for bankruptcy?
My lender says I'm past due on my payments. What do I do now?
Should I just move out now?
Should I refinance to get out of this mess?
What does a foreclosure notice look like?
Where can I get foreclosure advice?
My lender is foreclosing on my house. What do I do now?
What is a "Deed in Lieu of Foreclosure?"
I got a call from a Foreclosure Consultant. What do they do?
Should I file for bankruptcy?
Filing for bankruptcy is an important decision. Before going down this path, please discuss your
options with a competent attorney.
There are housing and counseling organizations in your area who will walk you through the steps
necessary to keep your home, including:
- In-depth financial counseling
- Debt management and repayment programs
- Access to community resources
- Working with your mortgage company
- Information about the foreclosure process
- Access to financial assistance
Contact the Minnesota
Housing and Finance Agency at:
Twin Cities 651-296-8215
Greater Minnesota 800-710-8871
TTY 651-297-2361
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My lender says I'm past due on my payments. What do I do now?
Respond immediately to letters from you lender, even if you don't have the money you need to get back
on track. Time is not on your side now, so don't put it off!
Act now. If you haven't done it already, call your lender immediately and ask them to
work out an arrangement called a "special forbearance" where you can catch up your payments. Have all
of your financial information at hand and explain your situation. If they agree to a plan, be sure
to make every payment on time and in the amount you agreed to.
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Should I just move out now?
Stay in your home for now. If foreclosure has started and you abandon your property, you may not
qualify for assistance, or you may accelerate the normal foreclosure timelines, leaving you less time
to work through the situation.
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Should I refinance to get out of this mess?
Sometimes that might be a good answer. You can start with reviewing the materials put out by the
Minnesota Don't Borrow Trouble Campaign.
The Minnesota Don't Borrow Trouble Campaign is
a public education initiative aimed at stopping predatory lending practices in the Twin Cities seven-county
metropolitan area. The Campaign seeks to educate families and individuals about how to avoid predatory
lending scams and about available community resources.
The Minnesota Don't Borrow Trouble Campaign
Help Line has been established at 612-312-2020 to offer families a safe
place to call before they sign anything that puts their home at risk.
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What does a foreclosure notice look like?
Usually a foreclosure notice contains information about deadlines, the amount past due, penalties, the
total needed to cure the default, etc. By Minnesota law, it must also contain this notice:
Help For Homeowners in Foreclosure
Minnesota law requires that we send you this notice about the foreclosure process. Please read it carefully.
Mortgage foreclosure is a complex process. Some people may approach you about "saving" your home. You
should be careful about any such promises.
The state encourages you to become informed about your options in foreclosure before entering into any
agreements with anyone in connection with the foreclosure of your home. There are government agencies and
nonprofit organizations that you may contact for helpful information about the foreclosure process. For
the name and telephone number of an organization near you please call the Minnesota Home Finance Agency
(MHFA) at 651-296-8215. The state does not guarantee the advice of these agencies.
Do not delay dealing with the foreclosure because your options may become more limited as time passes.
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Where can I get foreclosure advice?
You can call the Minnesota
Housing and Finance Agency at:
Twin Cities 651-296-8215
Greater Minnesota 800-710-8871
TTY 651-297-2361
The Minnesota Housing and Finance Agency also has a brochure called 
You Can Get Foreclosure Prevention Assistance to
help deal with foreclosure.
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My lender is foreclosing on my house. What do I do now?
When your mortgage is past due, you are technically in default of the terms of your loan. When you are
in default, your mortgage lender has the right to call the loan due or to foreclose. You may have the
option to cure the default by bringing all past payments current, and paying any penalties and fees.
In Minnesota, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or
non-judicial foreclosure process. For a summary, visit
Minnesota Foreclosure Laws.
You may also vist The Minnesota Statutes for Foreclosure.
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What is a "Deed in Lieu of Foreclosure?"
As a last resort, you may be able to voluntarily "give back" your property to the lender. This will not
save your house, but it is not as damaging to your credit as a foreclosure.
Whether or not the lender will accept your deed instead of foreclosing may depend on your situation. If you
have many other liens on the property, such as a second or third mortgage, tax liens, etc., the lender may
not want to take the deed back because that could actually decrease the value of their interest in the
property. You can find out by talking with your lender.
For information on this and other foreclosure matters, check out the publication called
How to Avoid
Foreclosure from the U.S. Department of Housing and Urban Development (HUD).
Also check out the main HUD Web Site on foreclosure.
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I got a call from a Foreclosure Consultant. What do they do?
If your lender has started foreclosure, Minnesota has very strict laws to protect you from the activities
of "foreclosure consultants." They may promise to save your house for a fee, or offer to buy your house
and let you continue to live there.
Seek legal advice before entering into any foreclosure consulting agreements. Visit the complete list of
Minnesota Statutes covering foreclosure consultants.
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