An unfortunate number of Minneapolis homeowners lose their properties to foreclosure each year. Foreclosure is a legal process through which a property is taken away from the mortgage payer and returned to the issuer of the mortgage. Foreclosures generally occur when mortgage payers fall behind on their financial obligations and mortgage issuers desire to prevent further losses by reclaiming properties and terminating the mortgages to which they were subject.
The foreclosure of residential properties is relatively common in the Twin Cities; less commonly known is the fact that commercial properties can suffer from foreclosures as well. When the owner of a commercial property falls behind on a mortgage, that property, regardless of its use, can be repossessed by its actual owner and sold to another entity that demonstrates its ability to manage the mortgage loan.
The foreclosure of a commercial property can present a business with many difficult choices. A business owner who cannot maintain payments on the mortgage of commercial space may have to decide if the business wants to move operations to a new location or permanently close its doors in the wake of the foreclosure process. If the financial situation is so dire that the company is struggling to meet other financial obligations of the business, the business owner may also consider bankruptcy as a means of stopping the foreclosure process.
At our law firm we understand how intimidating it can be to face foreclosure proceedings. Whether those proceedings involve the loss of a residential home or a business’s commercial space, they can raise many questions for the individuals who are threatened with losing their properties. Minnesota residents who are facing foreclosure have rights, however, and are encouraged to understand their legal options with regard to the process. Please visit the commercial property section of our law firm’s website for more information.