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Bench & Bar of Minnesota is the official publication of the Minnesota State Bar Association.

Foreclosure Redemption

If you have trouble explaining mortgage foreclosure redemption priority to clients, try this analogy—it’s like playing poker.

Suppose the property is subject to liens held by A, B and C.  Those are the three players at the poker table.  Mortgage Company A foreclosed, so that becomes their opening bid: A bids $125,000.  Home Equity Loan Company B is owed $50,000.  B must decide whether to see A and raise A’s bid by the amount of B’s loan (in other words, to redeem from A), or to fold.  If B redeems, the bid is $175,000 to Judgment Creditor C; if not, the bid remains $125,000.

To bid, you must “ante,” by filing the evidence of your client’s lien and a Notice of Intention to Redeem with the Recorder/Registrar and delivering to the Sheriff (along with his fees) copies of those documents showing the recording data, all before the end of the redemption period of A’s foreclosure (Minn. Stat. §580.24).

Nathan Bissonette

Deputy Examiner of Titles 

Ramsey County 

nathan.bissonette@co.ramsey.mn.us

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