Foreclosure in 55347>Question Details

Nancy, Home Owner in Greenwood, IN

Minnesota, Wells Fargo mortgage holder. My house is going to be sold at a sheriff's sale.

Asked by Nancy, Greenwood, IN Wed May 8, 2013

After the sale I have a six month redemption period.
MY QUESTION: if I owe $400,000 on the foreclosed mortgage, and they sell my home at the auction for $300,000, can I go to Wells Fargo and redeem for the $300,000 they sold it for, or will they require of me that I still pay the entire $400,000 I owed?

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Answers

6
300,000 will be your "New" mortgage amount and would be the amount needed to redeem your home. You can sell your property for more than 300,000 and not owe the difference as long as the "new" balance is payed and keep any proceeds made by the sale for yourself.
0 votes Thank Flag Link Fri Jan 3, 2014
In my experience it's rarer that the lender bids less than the amount owed. That said, my understatnding of the foreclosure process in MN is that mortgage redemption requires the borrower to pay the full outstanding mortgage balance plus any costs associated with the foreclosure.

For better advice than mine (which shouldn't be hard to find), and to locate a non-profit, HUD approved, foreclosure prevention expert in MN, visit the link below.
Web Reference: http://www.hocmn.org
0 votes Thank Flag Link Thu May 9, 2013
Interesting since I just answered your other question, but this makes more sense now. You only pay what was bid at the sheriff sale plus all the taxes and fees of course.

Minnesota is a non-recourse state. If this is your primary residence and WF is the only lien on the home you are good. It is really 2nd liens and so forth that can do deficiencies. As always, I am not an attorney so feel free to seek legal advice.

Good Luck to you
0 votes Thank Flag Link Wed May 8, 2013
I just closed one with the same circumstance and they walked away from the closing...in redemption, for $80,000. The only way they can pin the $100,000 deficiency on your taxes is if this was not your primary residence. I will give you my references if you are planning to sell.

Thank you,

Kevin Marois
651-755-0727
651-464-7004 office
Integrity1stTeam.com
Keller Williams Premier Realty
0 votes Thank Flag Link Wed May 8, 2013
I am in Minnesota Twin City area.

No one knows ahead of time what the lender will bid for the home. If you redeem (98%) don't or can't for many reasons biggest is it has to be cash.

You still have choices now if you wait to long you won/t call me and I can help. I never charge anyone for help and have helped many.

Cell phone 612-719-3236 or come into my office with an appointment on the Southwest corner of Hwy 101 and Hwy 7.
0 votes Thank Flag Link Wed May 8, 2013
You maybe should be more worried about the $100,000 difference in the form of a DEFICIENCY JUDGEMENT:
Although Indiana is Non-Recourse State; there may be exceptions and you need to know.
Research it on-line, or talk to a Real Estate Attorney.

The Indiana REDEMPTION rules would be something else to research. You probably need to talk to your Lender about the AMOUNT you would need to REDEEM the property; every State and every Bank is different. Have you talked to your Lender?
0 votes Thank Flag Link Wed May 8, 2013
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