Skip to content
ClosingCodeClosingCode
ENES

Minnesota · ForeclosureMinnesota deficiency after foreclosure: full satisfaction and the six-month bar

In Minnesota the amount received from a foreclosure sale by advertisement is full satisfaction of the mortgage debt, except as section 582.30 provides (Minn. Stat. §580.225). Under that section a mortgage holder may obtain a deficiency judgment against the mortgagor when the sale brings less than the amount unpaid or the foreclosure judgment, limited to the difference between the sale proceeds, less expenses and costs, and that amount. But no deficiency judgment is allowed when a mortgage is foreclosed by advertisement and has a six-month redemption period or a five-week redemption period. For a mortgage entered after March 22, 1986, on property used in agricultural production, a deficiency requires an action filed within 90 days after the sale with a determination of the property's fair market value (Minn. Stat. §582.30).

What the statutes set

  1. Full satisfaction (§580.225)

    Sale proceeds satisfy the debt unless §582.30 allows a deficiency.

  2. Amount (§582.30, subd. 1)

    Unpaid amount or judgment minus sale proceeds less costs.

  3. Barred (§582.30, subd. 2)

    None after advertisement with a six-month or five-week redemption period.

  4. Farm property (§582.30, subd. 3)

    Action within 90 days with a fair market value determination.

What the TC does on a Minnesota short sale or pre-foreclosure listing

  • Ask the seller's lender for a written payoff, or for the short sale approval and whether it waives any deficiency.
  • Record whether the sale is judicial or by trustee – the deficiency rules differ.
  • Calendar the auction date as the outside closing deadline.

Questions about Minnesota deficiency judgments

Can a Minnesota lender get a deficiency after a foreclosure by advertisement?

Not if the foreclosure has a six-month or five-week redemption period (Minn. Stat. §582.30, subd. 2).

What does a Minnesota foreclosure sale do to the debt?

The sale proceeds are full satisfaction of the mortgage debt except where §582.30 allows a deficiency (Minn. Stat. §580.225).

Related guides

Put the sale date and the redemption deadline on the deal as dated tasks in ClosingCode.

Start free trial

Sources: Minn. Stat. §§580.225, 582.30 (revisor.mn.gov), read October 30, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.