2025 Session Last amended: 2025 session

§ 580.28 — Action to Set Aside Mortgage; Foreclosure; Redemption

Plain-Language Summary

If you file a lawsuit claiming a mortgage is fraudulent, void, or already paid off, and the redemption period will expire before the court can decide the case, you can protect your rights by depositing the redemption amount with the sheriff. The court will then decide who gets the money and whether the foreclosure was valid.

580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE; REDEMPTION.

When an action is brought wherein it is claimed that any mortgage as to the plaintiff or person for whose benefit the action is brought is fraudulent or void, or has been paid or discharged, in whole or in part, or the relative priority or the validity of liens, redemption rights, or rights to any surplus is disputed, if such mortgage has been foreclosed by advertisement, and the time for redemption from the foreclosure sale will expire before final judgment in such action, the plaintiff or beneficiary having the right to redeem, for the purpose of saving such right in case the action fails, may deposit with the sheriff before the time of redemption expires the amount for which the mortgaged premises were sold, with interest thereon to the time of deposit, together with a separate deposit with the sheriff of one year’s interest on the amount deposited. The person shall, in writing, notify such sheriff that such action is pending, and direct the sheriff to retain such money until final judgment or other order of the court. If so ordered by the court, such deposit shall operate as a redemption of the premises from such foreclosure sale, and entitle the plaintiff to a certificate thereof. Such foreclosure, deposit, and notice shall be brought to the attention of the court by supplemental complaint in the action, and the judgment shall determine the validity of the foreclosure sale, and the rights of the parties to the moneys so deposited, which shall be paid and delivered by the sheriff as directed by such judgment upon delivery to the sheriff of a certified copy thereof. The remedy herein provided shall be in addition to other remedies now existing.

History:

(9631) RL s 4485; 1986 c 444; 2008 c 341 art 5 s 18; 2025 c 35 art 10 s 9

History: History: (9631) RL s 4485; 1986 c 444; 2008 c 341 art 5 s 18; 2025 c 35 art 10 s 9

Practical Notes

This is an important safeguard. It lets a homeowner preserve the right to redeem while challenging a foreclosure in court. The deposit must be made before the redemption period expires.

Source: Minnesota Office of the Revisor of Statutes