Legal Question in Real Estate Law in Minnesota

Re: Homestead Exemption

Under Minnesota statutes your homestead is exempt from being seized by creditors up to a value of $250,000 - at least thats what it was the last time I checked. When you obtain a mortgage on your homestead, however, that is an exception to the exemption. When it comes to a mortgage, you either pay it or get foreclosed - either pay or they take your home. So in giving a mortgage, you give up your homestead exemption as far as the mortgage company is concerned. The exemption still applies to all other creditors - except the IRS and the state of Minnesota. There are rules, procedures and time periods, but you can lose your home for not paying taxes too.

I hope this answers your question. This response is for general information purposes only and does not create an attorney-client relationship. You are advised to consult a lawyer of your choice concerning the specifics of your case.