Legal Question in Real Estate Law in Minnesota

if i were to default on a conventional home loan, am i liable for any money

Asked on 12/28/10, 1:44 pm

1 Answer from Attorneys

Cameron Kelly Cameron Kelly Law, LLC
0 users found helpful
0 attorneys agreed

The answer is that "it depends", and I would strongly recommend that you talk to someone about your situation prior to making a decision.

First of all, a bank can choose to foreclose one of two ways in Minnesota, and their decision on which method to use is critical to the answer to your question. Basically, whether you owe money will depend on whether a bank can seek a deficiency judgment (a judgment for the difference between the property value and the amount you owe on your mortgage plus the bank's fees and costs). If the bank chooses to foreclose by advertisement (the easy way), they can not seek a deficiency judgment. If they choose to foreclose by action (commencing a court action), then they can seek a deficiency judgment.

Secondly, if you have a second or third mortgage, or other liens against the property, these lien holders can often seek a money judgment.

Because there are so many variables, I usually suggest that it is worth talking through the possibilities prior to making a decision. If you would like to speak with me, please feel free to contact me. Cameron Kelly Law, LLC

Read more
Answered on 1/02/11, 7:30 pm

Related Questions & Answers

More Real Estate and Real Property questions and answers in Minnesota

Looking for something else?

Get Free Legal Advice

88393 active attorneys ready to answer your legal questions today.

Real Estate and Real Property Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Barry SteinDe Cardenas, Freixas, Stein & ZacharyMiami, FL
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Charles AspinwallCharles S. Aspinwall, J.D., LLCLos Lunas, NM
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now