Minnesota Foreclosure Listings Key Terms

Master Minnesota foreclosure listings key terms to land great property deals

Browsing Minnesota foreclosure listings is a good way to find lower-cost properties for investment. However, most listings contain several terms that investors may not be familiar with. Learning some Minnesota foreclosure listings key terms can help you read Minnesota foreclosure listings more effectively and can help you hone in on the investment properties that are right for you. Understanding some of the most common key terms can also help you avoid some common investment pitfalls.

Mortgage foreclosure

Mortgage foreclosure is the process by which a lender or government agency repossesses a property. This happens when a mortgage goes into default because the homeowner has fallen behind in payments.

Non-judicial foreclosure

The vast majority of Minnesota's foreclosures are non-judicial, which means the lender does not have to go to court in order to start the foreclosure process.

Real estate owned (REO) properties

Real estate owned (REO) properties are properties being sold by the lender, usually a bank. This generally occurs when the lender has bought the property back at auction or has failed to sell the property at auction.

Pre-foreclosure

At the pre-foreclosure stage, the lender has already started foreclosure proceedings but the public auction of the home has not yet occurred. The property still belongs to the homeowner and the homeowner can stop the foreclosure process by selling the home or by paying off the mortgage debt.

Sheriff's auction

The sheriff's auction is a public sale at which homes in foreclosure are sold. In Minnesota, the sheriff is generally the one who organizes and conducts the foreclosure auction. Some Minnesota foreclosure listings offer lists of local auctions, as well as listings of homes.

Cloud on title

When there is a claim made against a property due to unpaid taxes, unresolved lawsuits or other problems, the home is considered to have a "cloud" on its title. This can cause much legal hassle and cost to the new homeowner. Since most property sold through Minnesota foreclosure listings is sold without any warranties or guarantees, it is important to check for any clouds on the title of the property to avoid any problems before making an offer.