Minnesota is well known for its farms and winter sports. Located in the northern part of the United States, it butts against Canada and has a great deal of cold, winter weather. In these economic times Minnesota Foreclosures have been profound and many good bargains can be found.
It was one of the first in the nation to enact a Homeowner-Lender Mediation Act which requires the participation of lenders and owners prior to foreclosure. Passed in 1986 it was intended to keep farmers from losing their property. A check of 2009 figures shows that mediation were up 86 percent over that year. Under this act the owner must undergo financial counseling prior to mediation.
One of the laws in the state allows the person who can no longer make payment on the house to offer the deed to the lender. This allows the owner to retain a good credit record. However, there is a clause that many do not read that the owner is still responsible to pay the rest of the money due on the contract. This, in many cases, results in the owner having to file for bankruptcy which ruins their credit anyway.
Lenders, in general, simply shudder at the thought of assuming more foreclosure homes. Handling a foreclosure home is very expensive and involves a lot of legal and paper work. Many of the homes are in disrepair and needs extensive work. Most of these homes are sold “as-is” but the buyer should be wary of this type of sale.
Before purchasing a foreclosed home in Minnesota or elsewhere one should carefully research county records, state foreclosure laws, value of neighborhood homes and anything else pertinent. In some states a new owner finds that there is a lien on the property and they are responsible not only for the purchase price but for what the previous owner owed as well.
In this state a person can ask for a Truth in Housing Inspection Report. This covers an inspection by a licensed home inspector and lists any defects found. After viewing the document the prospective purchaser can then request an adjustment on the price to cover necessary repairs. Some counties require this document but others do not.
Under Minnesota law a Transfer Disclosure Statement must be presented to the prospective buyer. This report is to reveal defects not apparent to the naked eye. In many cases, however, many defects can be cosmetically concealed. In all cases the purchaser must be aware of this possibility.
Before making any purchase of a foreclosed home it is important that you have the correct real estate person representing you. They are aware of the Minnesota Foreclosures state laws and can advise when a good purchase is available. Today there are many scams on the market. One of the most resent is mailings listing attractive homes available at a very low price. Unfortunately, these are not foreclosed homes and are not for sale. A person who makes a deposit on one of these homes loses their money and the scammers are long gone.
When you see the vast selection of MN foreclosures available, you will want to learn about the simple steps that will get you your dream home fast. Taking advantage of the MN foreclosure market can get you a home within your budget today!
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