Partnership creates an easy-to-use online tool to assist Minnesota homeowners postpone their foreclosure sale

Minnesota state law has allowed homeowners the right to delay their foreclosure sale (“Sheriff’s Sale”) on their home by five months (11 months in certain rural/agricultural areas) since mid-2009. Knowing the steps to take and how to fill out the legal documents necessary to postpone the sale, however, has been an obstacle for many Minnesota homeowners. That changes today with the announcement that the Minnesota Legal Services Coalition, Southern Minnesota Regional Legal Services and the Minnesota Home Ownership Center have partnered on the creation of a free online tool that assists homeowners with the process.

“The extra time from a postponement can open a critical window of opportunity for homeowners to work with a foreclosure counselor, explore home-saving strategies, and often stop the foreclosure entirely,” stated John Freeman, Staff Attorney with the Minnesota Legal Services Coalition.

How it Works

The Foreclosure Postponement Tool (online at www.LawHelpMN.org/ForeclosurePostponement) asks homeowners a series of simple questions, then automatically fills out the legal form they need - the "Foreclosure Sale Postponement Affidavit." Along with their finished form, users also receive a set of simple, yet detailed instructions on how to file the form properly. Once the form has been filed and the proper parties have been notified, the postponement takes effect.

Making the Most of the Extra Time

Now that the foreclosure sale has been postponed, what happens next?

Homeowners should start by finding a free, non-profit foreclosure counselor - while always staying wary of scams. Some web sites offer to "save your home" by charging premium prices for services that are available for free. What's more, these businesses often provide low quality services.

To mitigate this problem, the Foreclosure Postponement Tool encourages users to contact the Minnesota Home Ownership Center (www.HOCMN.org). The Center offers referrals to reputable non-profit counselors via the Homeownership Advisors Network.

Last year, HOCMN.org and affiliated counselors served roughly 12,000 clients in foreclosure and approximately 60% of those clients were ultimately able to avoid foreclosure - a remarkably high success rate proving that individuals can fight against foreclosure and keep their homes.

The Foreclosure Postponement Tool was created by the Minnesota Legal Services Coalition, in partnership with Southern Minnesota Regional Legal Services and the Minnesota Home Ownership Center.

Minnesota Legal Services Coalition:
Founded in 1981, the Minnesota Legal Services Coalition (MLSC) is an association of seven Minnesota regional legal services programs. Formed to enhance cooperation and coordination, MLSC supports providers of civil legal services to low-income persons throughout the state. Among its activities, MLSC directly serves low-income Minnesotans through its various community legal education efforts. For more information, visit www.mnlegalservices.org.

Minnesota Home Ownership Center is a nonprofit organization that promotes successful and sustainable home ownership for low- and moderate-income Minnesotans through counseling and education services for first-time home buyers and those struggling with foreclosure. The Center leads Homeownership Advisors Network, a statewide network of more than 50 nonprofit partners across Minnesota.