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Joe Hughes - 612-290-8232                 info@yourhometownrealtors.us             Justin Burvee - 612-221-4458

You have received a letter from us for one of two reasons.

  • The first is that your mortgage sold for less than what you owed prior to the Sheriff Sale.
  • The second is that the AVM (automated valuation module) indicates that your home may be worth more than what you owe.

In either case, it means you may now have equity where you may not have prior, and we want to get you all the equity that may be available to you.

Here’s how it works for persons whose home sold for less at the Sheriff Sale.

  • Let’s say a person’s mortgage was $160,000, but sold at the Sheriff Sale for $85,000. Then the home was listed for sale and sold for $120,000.
  • The mortgage payoff is what was bid at the Sheriff Sale plus interest and attorney fees, regardless of what was previously owed.
  • Now let’s say the full payoff is $88,000.
  • Let’s also say the total cost to sell was about 7.5%. (Commission, title, recording fees etc.)
$120,000 – 7.5% = $111,000. Subtract payoff ($88,000) and a surplus (equity) of $23,000 remains. A little known law in MN says that the equity was theirs to keep! That’s right! Given the example above this person received a check for $23,000 at the closing. Obviously in order to see if there is any equity in your case, we need to know what your house is worth in today’s market. 

So what’s the catch? If there are any junior liens such as tax liens, a 2nd mortgage, mechanic’s liens etc., those would have to be paid out of the surplus before you would be able to keep anything that’s left over.

The same is true for those who received a letter in regards to your AVM value. The only difference in this situation is that your home may already be worth more than what you owed, and you may not have been aware of it, or knew that you still have the right to sell your home after a Sheriff Sale.

In either case, it is NOT considered a short sale, but rather a statutory redemption sale. In addition, it is not considered a foreclosure, and a certificate of redemption will be issued to you upon a successful closing as proof that you avoided foreclosure.

To get an idea of how much money you may be entitled to, or if you have questions or concerns, please contact us.

Typically you will have less than 6 months to redeem by the time you are reading this. The average time to get a home listed and sold is 60-90 days so unfortunately time is not on our side.

“Note: This page provides general information and is not meant to be legal advice. Consult a competent legal professional for advice specific to your situation.” 

sheriff sale information