Pursuant to Minnesota Statutes, most properties sold in a Mortgage Foreclosure action can be redeemed by the mortgagor. The published Notice of Mortgage Foreclosure Sale usually contains a paragraph indicating the length of the redemption period. In most cases, this is six months. However, some Mortgage Foreclosures are subject to federal regulations, in which case there is no redemption period.
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).
For the redemption of foreclosed properties through the Dakota County Sheriff's Office, advance fees of $250 are required in all cases. Law firm and title company checks are accepted. All others must pay with cashier's check, money order, or cash. We also need the following information along with advance fees:
- Name of mortgagor
- Name of the party redeeming, if not the mortgagor
- Date of sale
- Date of Redemption
- Address of property
- Name of person to contact with the redemption figures (phone and fax numbers)
Payment of the redemption amount must be tendered to the Sheriff's Office in certified funds made payable to the Dakota County Sheriff's Office. No other type of funds will be accepted.
Redemption by Mortgagor (Recorded Fee Owner)
If a mortgagor wishes to obtain a Certificate of Redemption from the Sheriff's Office, it is imperative that you contact our office at 651-438-4780. Please provide us with as much advance notice as possible prior to the anticipated redemption to confirm your intent to redeem and to obtain updated payoff information. 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 foreclosure sale
- Interest accruing from the date of sale to the date of redemption. (This is computed at the 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/Register of Titles within the listed redemption period in order to collect those amounts as part of the redemption.
Redemption by Other Parties
After the normal redemption period has expired, persons other than the mortgagor may redeem. These may include persons who hold or have obtained junior liens:
- Mechanic's Lien filed against the property
- Judgment against the mortgagor
- Mortgage against the property other than the foreclosed mortgage
- Other valid lien existing against the property
Redemption by other parties has specific legal requirements. It is recommended that any person interested in this type of redemption consult an attorney.
Minnesota Statutes 580.24 and 580.25 give the requirements for redemptions by junior lien holders. As of January 1, 2005, copies of all redemption documents must be filed with the Sheriff as soon as they have been filed with the recorder or registrar, including recorded copies of the underlying lien and Notice of Intent to Redeem.
- Notice of Intention to Redeem filing fee: $100 per set of documents. Only one lien referenced per notice.
- A certificate of Redemption issued by other parties: $20 filing fee.
The Dakota County Board following a public hearing establishes fees for redemption.