THIS MAY NOT BE TRUE!
In Minnesota - if a house is sold at the Sheriff's sale - and the sale price isn't enough to cover all debt against the property - there may be PERSONAL financial responsibilities for the homeowner(s).
There are specific situations in MN where lien holders can seek a personal deficiency judgment, - in plain English: sue a consumer - for unpaid debt after a foreclosure.
The Housing Preservation Project, in cooperation with the Minnesota Home Ownership Center, and the Volunteer Lawyers Network, has put together a fact sheet that outlines what can happen in Minnesota if the Sheriff's sale price doesn’t cover all outstanding debt against the property.
The fact sheet covers the different types of foreclosure - including the difference between a foreclosure by advertisement and a foreclosure by action - and its effect on judgments. In addition, the fact sheet explains what can happen with second, and other junior, lien holders.
The fact sheet can be downloaded here.
Consumers that are having difficulty making their house payment should seek the services of a certified non-profit (FREE, Non-Biased) foreclosure prevention specialist to understand their options and responsibilities during a foreclosure. For a complete list of foreclosure prevention specialists, click here.