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Minnesota Supreme Court ruling favors homeowners fighting foreclosure


Consumer advocates like Prentiss Cox, who is an expert on this subject working at the University of Minnesota law school, say this ruling gives homeowners who are fighting to keep their homes a new avenue to pursue in court.


On April 17, the Minnesota Supreme Court issued a ruling that many observers say will have far-reaching implications for homeowners who are contesting foreclosures stemming from the effects of the most recent collapse in the real estate market.

According to the Minneapolis Star Tribune, the high court unanimously decided that a foreclosing party must fully comply with the state law requiring that all the entities that have held a mortgage be clearly documented before a foreclosure sale can begin.

The case in question involved 40-year-old Doris Ruiz, a Minneapolis resident whose home was foreclosed on despite the fact that this paperwork was not in order. Her foreclosure was quickly voided as her loan servicing organization filed paperwork on the same day to initiate a foreclosure sale.

Consumer advocates like Prentiss Cox, who is an expert on this subject working at the University of Minnesota law school, say this ruling gives homeowners who are fighting to keep their homes a new avenue to pursue in court.

“This is the first decision from [the] Minnesota Supreme Court that suggests strict compliance really means strict compliance,” Cox told the news source. “This is an industry that has had extraordinary problems putting one foot in front of the other to comply with legal requirements when they foreclose.”

The ruling effectively blocks organizations from saying they “substantially complied” with the recording requirement prior to starting the home sale process.

While this development may be helpful to those who are currently contesting previously initiated foreclosures, residents of Minneapolis, Anoka County, Ramsey County and the entire state can pursue legal avenues to keep their homes with the help of a reputable Twin Cities bankruptcy law firm.

Whether the best available legal avenue for you is to file for bankruptcy, enroll in loan modification services or an alternative, at Atlas Law Firm, we can help you make a decision that allows you to save your home from foreclosure.

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