Minnesota Foreclosure Basics
Pre-foreclosure is the period between the time when the lender notifies the borrower that it will file a foreclosure lawsuit or notice of default in the public record, and the time when the property is sold at auction.
Foreclosure is the process used by a lender to legally repossess a property if the borrower fails to make mortgage payments on time.
A short-payoff sale (short sale) occurs when the mortgage lien holder(s) agree to release their collateral interest in a property for less than the principle balance owed. Essentially, the lender agrees to sell for less than is owed on the property.