What Can I Do if my Home or Business is in Foreclosure?

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Minnesota still has in place a state-ordered moratorium on home and commercial property foreclosures as the COVID-19 pandemic continues to negatively impact the global and local economy. This blog will review what you can do if foreclosure proceedings have begun on your home or business. 

Edina Foreclosure Defense Attorney 

The foreclosure process – residential and commercial – is stressful and overwhelming. We work hard, pay our bills, and build our lives. Nobody dreams they will ever lose their home or business. But it happens to good people, the hardest workers, and the savviest entrepreneurs, especially during times of economic strife. You’re not alone in this – remember that. 

The attorneys at MLG Bankruptcy are knowledgeable in Minnesota foreclosure defense. We’ve helped countless Minnesotans save their homes, protect their families, and preserve their livelihood. We understand, we care – and we are here to help. Give us a call at 952.841.9000 or contact us here to schedule a free consultation via phone or video chat. 

Foreclosure Proceedings: Why Hire a Real Estate Attorney? 

Foreclosure could negatively affect you and your homeownership, or your status as a business owner if it’s a commercial property being foreclosed. Both are negative, life-changing outcomes that may take years to overcome. It’s important to understand Minnesota foreclosure proceedings. There are plenty of options that a real estate attorney can look at and help you determine which is the best for you, your family, or your company. An attorney knows how to communicate with lenders and understands the law and timelines regarding foreclosure actions. Hiring an attorney to help you in this process buys you precious time and allows you to consider what actions to take moving forward. 

I Received a Foreclosure Notice: What Do I Do Now? 

If you know your residential or commercial mortgage is in default, or if you’ve  been notified by your lender that foreclosure proceedings have begun, get in touch with a real estate attorney as soon as possible. It’s tempting to ignore the notice out of fear and worry; you may feel like putting it off or avoiding it altogether. But turning a blind eye to the problem will only make things worse. Once a sale is scheduled, things get especially complicated. 

Minnesota statute allows for certain postponement defenses, but these options are specifically time sensitive, making it even more important to have an attorney on your side as soon as possible. One defense tool with a foreclosure by advertisement is Postponement by the Mortgagor. This defense allows the borrower to postpone the sale by five months, during which time the homeowner can remain in the property and revisit other modification options. This option, however, requires that certain notice be served within 7 days before the scheduled sale- no exceptions. Contact MLG Bankruptcy right away to discuss your options. 

If a property owner has submitted modification documents to the loan servicing company, but action toward a foreclosure sale moves forward regardless, that is called “dual tracking” in Minnesota – and it is illegal. If that happens, the lender has to stop all foreclosure proceedings and re-start the process from the beginning. In other words, the lender has to start again with sending the borrower notice of mitigation options. This means the borrower’s application will be considered for modification and the original sale must be cancelled. Again, this option is specifically time sensitive, but the attorneys at MLG Bankruptcy can assist you in navigating these options timely and efficiently. 

Should I Declare Bankruptcy? 

Filing bankruptcy is an option if you are facing residential or commercial foreclosure and feel as though other debt will keep you in a precarious situation even after a loan modification is approved by your lender. Bankruptcy allows you a fresh start and either wipes out or reorganizes your debt so it is manageable. Our firm focuses on three types of bankruptcy – Chapter 11 for businesses, Chapter 13 for consumers, and Chapter 7, also for consumers. Chapter 11 and 13 are similar in that they reorganize debt and allow you to keep the property yet stop foreclosure proceedings. Chapter 7 wipes out debt. In most cases, people are allowed to keep their properties if they request Chapter 11 or Chapter 13 relief.

ABOUT MLG Bankruptcy

Integrity and trust is the foundation of our practice. Our passion for client success is matched only by our experience, our reputation for excellence, and our deep understanding of each and every client’s individual needs. 

At MLG Bankruptcy, we don’t just counsel our clients. We invest in them. 

We’ve been serving the Edina and Twin Cities communities since 2002. Our attorneys provide personalized, cost-effective legal services to clients seeking help in real estate, business development, commercial litigation, bankruptcy, loan modification, personal injury claims, family law, and other matters. 

Our experienced Edina attorneys believe that relationships matter, whether a client is trying to navigate a purchase agreement, get a business off the ground, or dissolve a partnership. Our lawyers appear regularly in state and federal court, in administrative hearings, and in various alternative dispute resolution forums, including mediation and arbitration.

MLG Bankruptcy is the best Minnesota law firm for all of your real estate, business, bankruptcy, and family law, personal injury legal needs. We advocate for our clients with professionalism, vigor, and with a results-driven approach. 

Let’s get started today! 

For more information or to book a free consultation, call 952.841.9000.