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Foreclosure prevention

 

What is foreclosure

Foreclosure is a legal action used by a mortgage company to recover money from a customer who does not pay his or her debt in accordance with the terms of the mortgage agreement. The foreclosure process begins with the first missed mortgage payment.

Reasons for pending foreclosure

Foreclosure is something that many people think can never happen to them. The reality is - it can happen to anyone. A homeowner may face sudden extenuating circumstances that force them to stop making timely payments. Here are a few of those reasons:

  • Rising interest rates.
  • Unemployment.
  • Divorce.
  • Health problems.
  • Death of a family member.

Ways to avoid foreclosure

If you are having difficulty making a payment, or you anticipate a problem in meeting your mortgage obligations in the future, contact your lender immediately. Lenders would rather work out a payment schedule than let the borrower get further and further behind.

The following files offer more information about avoiding foreclosure:

Beware of mortgage foreclosure and short sale scams

Need help understanding foreclosure?

If you feel that you need more information to help you understand the foreclosure process, your rights and what steps to take, try the links below. These organizations offer assistance in helping homeowners to avoid foreclosure.

Minnesota's new Foreclosure Postponement Law
(effective June 15, 2009)

Minnesota's new Foreclosure Postponement Law allows homeowners that have fallen behind on their mortgage payments to postpone the 'Sheriff's Sale' or Sheriff's Auction by five months. Click on the following links for more information.

President Obama's 'Making Home Affordable' plan:
What does it mean for Minnesotans?

Check these websites for more information:

Free foreclosure workshops and programs

Minnesota Home Ownership Program workshops

In partnership with Hennepin County, Hennepin County Libraries, Saint Paul Public Libraries and Washington County Libraries, the Home Ownership Center is offering a number of community workshops for homeowners facing foreclosure. These workshops will provide information on what happens during foreclosures, homeowners' rights, and solutions for long-term housing needs. Participants will be able to ask questions and get free advice - confidentially - from mortgage lending and foreclosure specialists.

For more information and directions, see Minnesota Home Ownership Center. 

Workshops on Video

Hennepin County, through its Public Affairs and Taxpayer Services departments, in partnership with Minnesota Home Ownership Center, is now offering its web-based, mortgage foreclosure workshop on video and in English or Spanish. The workshop includes information about the foreclosure process, rights during foreclosure, and available assistance for homeowners, as well as renters.

Foreclosure information for military personnel

For questions and answers for reservists, guardsmen, and other military personnel, go to:

Foreclosure information for renters

Foreclosure listings