It is often the case that when a Minneapolis business or resident seeks to buy real estate it has to do so with some level of financing. Financing can come in the form of a mortgage or other lending device that extends credit to the buyer and for which that buyer becomes liable. Generally, as long as the buyer maintains the payment schedule on the lending device most problems will be avoided. However, when a buyer falls behind on his payments he may face legal consequences.
One of those consequences is foreclosure. Foreclosure can happen in both the residential and commercial real estate worlds. A foreclosure involves the repossession and sale of a property from a buyer and by the actual owner through which the outstanding balance on the property is repaid. Foreclosure proceedings cannot be initiated against a party until such time as the buyer is in default of payments on the property.
In the residential real estate world, foreclosure can displace families and uproot people's lives. In the commercial real estate world, it can force businesses to move out of their locations and in some cases permanently close their doors. Foreclosure can place an immense financial burden on any entity that has suffered economic setbacks, whether that entity is an individual or a business.
The people and businesses that face foreclosure do have rights. Property owners and lenders must provide such parties with sufficient notice of pending foreclosure proceedings and often must give buyers an opportunity to make right their delinquencies before foreclosure proceedings begin. Facing foreclosure as a business or individual can be scary, but with the right legal help a party can protect its rights through the entire process.