Foreclosure: Redemption

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 6 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).

Redemption by Mortgagor (Recorded Fee Owner)

If a mortgagor wishes to obtain a Certificate of Redemption from the Sheriff’s Office, they need to complete a Redemption Payoff Request Form (PDF). 

It is imperative that you submit the request and fee to the Civil Unit at 952-496-8320 at least one week 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 date or documents are required.

The amount of the redemption is determined by the following:

  • Amount of the 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

Payments

Payment of the redemption amount must be tendered to the Sheriff’s Office in in the form of a Cashier's Check or title company escrow account checks made payable to the certificate holder. No other type of funds will be accepted. For details, please call our Civil Deputy at 952-496-8723, 952-496-8130, or 952-496-8320

Redemption by Other Parties

After the normal redemption period has expired, redemptions may be made by persons other than the mortgager. These may include persons who hold or have obtained junior liens:

  • Judgment against the mortgagor
  • Mechanic’s Lien filed against the property
  • Mortgage against the property other than the foreclosed mortgage
  • Other valid lien existing against the property

Redemption by other parties has some specific legal requirements. It is recommended that person interested in this type of redemption consult with 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.

Redemption Fees

The fee for redemption must be paid at the time the request is submitted, before a Certificate of Redemption is issued. View the Scott County Fee Schedule (PDF). Please note that there is a $100 fee for the Notice of Intent to Redeem as well as a $250 dollar fee for document research and certificate preparation