Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1027 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to real property; providing for mortgage foreclosure redemption and
3	3		1.3 surpluses; amending Minnesota Statutes 2024, sections 272.45; 580.10; 580.225;
4	4		1.4 580.24; 580.25; 580.26; 580.28; 582.03, subdivisions 1, 2; 582.043, subdivision
5	5		1.5 6.
6	6		1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7		1.7 Section 1. Minnesota Statutes 2024, section 272.45, is amended to read:
8	8		1.8 272.45 TAXES PAID BY TENANT, OCCUPANT, OR OTHER PERSON BECOME
9	9		1.9LIEN, UPON NOTICE FILED WITH COUNTY RECORDER OR REGISTRAR OF
10	10		1.10TITLES.
11	11		1.11 When any past due or delinquent tax on land is paid by any occupant, tenant, or person
12	12		1.12with an a legal or equitable interest in the land other than a lien, or a person acting on that
13	13		1.13person's behalf, which, by agreement or otherwise, ought to have been paid by the owner,
14	14		1.14lessor, or other party in interest, such occupant, tenant, or person may recover by action the
15	15		1.15amount which such owner, lessor, or party in interest ought to have paid, with interest
16	16		1.16thereon at the rate of 12 percent per annum, or may retain the same from any rent due or
17	17		1.17accruing from the person to such owner or lessor for land on which such tax is so paid. A
18	18		1.18person making a payment under this section may file with the county recorder or registrar
19	19		1.19of titles of the proper county a notice sworn statement stating the amount and date of such
20	20		1.20payment, with a copy of the receipt attached, and stating the legal or equitable interest
21	21		1.21claimed in the land, with a description of the land against which the taxes were charged;
22	22		1.22and the same shall thereupon be a lien as of the date of recording of the sworn statement
23	23		1.23upon such land in favor of the person paying the same until the same is paid. The county
24	24		1.24recorder shall record such notice sworn statement in the indices maintained by the county
25	25		1Section 1.
26		-	REVISOR JSK H1027-1HF1027 FIRST ENGROSSMENT
27		-	116
28		-	Printed
29		-	Page No.State of Minnesota
	26	+	REVISOR JSK/AD 25-0130312/13/24
	27	+	State of Minnesota
30	28		This Document can be made available
31	29		in alternative formats upon request
32	30		HOUSE OF REPRESENTATIVES
33	31		H. F. No. 1027
34	32		NINETY-FOURTH SESSION
35		-	Authored by West and Feist02/17/2025
36		-	The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law
37		-	Adoption of Report: Placed on the General Register as Amended04/01/2025
38		-	Read for the Second Time 2.1recorder. The registrar of titles shall record the notice sworn statement on the certificate of
	33	+	Authored by West02/17/2025
	34	+	The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law 2.1recorder. The registrar of titles shall record the notice sworn statement on the certificate of
39	35		2.2title for the land. Upon the payment of any such lien, the person filing such notice sworn
40	36		2.3statement shall satisfy the same of record.
41	37		2.4 Sec. 2. Minnesota Statutes 2024, section 580.10, is amended to read:
42	38		2.5 580.10 SURPLUS.
43	39		2.6 Subdivision 1.Demand for surplus.In all cases not provided for in section 580.09, and
44	40		2.7except as required by subdivision 3, if, after sale of any real estate, made as herein prescribed,
45	41		2.8there remains in the hands of the officer making the sale any surplus money, after satisfying
46	42		2.9the mortgage, with interest, taxes paid, and costs of sale, the surplus shall be paid over by
47	43		2.10such officer, on demand, to the mortgagor, the mortgagor's legal representatives or assigns.
48	44		2.11Any surplus of $100 or greater shall be held by the sheriff for the duration of the time
49	45		2.12allowed for redemption under section 580.23 or 582.032, whichever is applicable, and if
50	46		2.13requested by the owner, applied toward a redemption as described in subdivision 3. If there
51	47		2.14is no redemption under section 580.23 or 582.032, a surplus of $100 or greater shall be paid
52	48		2.15first to junior creditors with liens of record at the time of the sheriff's sale in order of priority,
53	49		2.16if demanded by a junior creditor within the time allowed for redemption under section
54	50		2.17580.23 or 582.032, whichever is applicable, and thereafter to the owner of record at the time
55	51		2.18of the sheriff's sale, or as provided by court order under section 580.28. A demand by a
56	52		2.19party other than the owner shall be accompanied by an affidavit stating the amount remaining
57	53		2.20unpaid and the interest creating a right to the surplus.
58	54		2.21 Subd. 2.Notice of surplus.When there is a surplus of $100 or greater, the sheriff shall
59		-	2.22notify the owner by mail sent to the property address, or if no street address is assigned for
60		-	2.23the property on the property tax statement, to the taxpayer's address on the property tax
61		-	2.24statement, that a surplus exists and to call the sheriff's office for more information about
62		-	2.25the surplus and how to make a claim to the surplus. The notice shall also include contact
63		-	2.26information for the Minnesota Homeownership Center and a statement to call the Minnesota
64		-	2.27Homeownership Center for information about redemption and surplus.
65		-	2.28 Subd. 3.Request by owner to have surplus applied.At any time during the owner's
66		-	2.29redemption period, the owner of record at the time of the sheriff's sale may submit a written
67		-	2.30request to the sheriff to have the surplus applied to the redemption amount. The right to
68		-	2.31have the surplus applied to the redemption amount is not transferable to any subsequent
69		-	2.32owner.
70		-	2.33 Subd. 4.Surplus less than $100.If a surplus remains under $100, the sheriff may pay
71		-	2.34the surplus amount to the owner of record at the time of the sheriff's sale.
	55	+	2.22notify the owner by mail sent to the property address that a surplus exists and to call the
	56	+	2.23sheriff's office for more information about the surplus and how to make a claim to the
	57	+	2.24surplus. The notice shall also include contact information for the Minnesota Homeownership
	58	+	2.25Center and a statement to call the Minnesota Homeownership Center for information about
	59	+	2.26redemption and surplus.
	60	+	2.27 Subd. 3.Request by owner to have surplus applied.At any time during the owner's
	61	+	2.28redemption period, the owner of record at the time of the sheriff's sale may submit a written
	62	+	2.29request to the sheriff to have the surplus applied to the redemption amount. The right to
	63	+	2.30have the surplus applied to the redemption amount is not transferable to any subsequent
	64	+	2.31owner.
	65	+	2.32 Subd. 4.Surplus less than $100.If a surplus remains under $100, the sheriff may pay
	66	+	2.33the surplus amount to the owner of record at the time of the sheriff's sale.
72	67		2Sec. 2.
73		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 3.1 Subd. 5.Resolution of competing claims.If there are competing ~~claims or if it appears~~
74		-	3.~~2to the sheriff~~ that any claim is not meritorious, the sheriff may apply to the court in the
75		-	3.~~3county in~~ which the sale was made and set forth by petition the facts then known to the
76		-	3.~~4sheriff, and the~~ names and addresses of the owner and all known claimants to the surplus,
77		-	3.~~5at no cost to the~~ sheriff. The sheriff shall retain the surplus until further order of the court
78		-	3.~~6under section 580~~.28. If a hearing is scheduled, the sheriff may participate in an advisory
79		-	3.~~7capacity. The sheriff~~ shall be represented by the county attorney. The sheriff shall give
80		-	3.~~8notice of the opening~~ of the court file to the holders of the claims by service of the petition
81		-	3.~~9in the manner of~~ a summons under the Rules of Civil Procedure. Failure of an owner to
82		-	3.~~10participate in the court~~ action does not waive the right of that owner to the surplus.
	68	+	REVISOR JSK/AD 25-0130312/13/24 3.1 Subd. 5.Resolution of competing claims.If the sheriff determines there are competing
	69	+	3.2claims or that any claim is not meritorious, the sheriff may apply to the court in the county
	70	+	3.3in which the sale was made and set forth by petition the facts then known to the sheriff, and
	71	+	3.4the names and addresses of the owner and all known claimants to the surplus, at no cost to
	72	+	3.5the sheriff. The sheriff shall retain the surplus until further order of the court under section
	73	+	3.6580.28. If a hearing is scheduled, the sheriff may participate in an advisory capacity. The
	74	+	3.7sheriff shall be represented by the county attorney. The sheriff shall give notice of the
	75	+	3.8opening of the court file to the holders of the claims by service of the petition in the manner
	76	+	3.9of a summons under the Rules of Civil Procedure. Failure of an owner to participate in the
	77	+	3.10court action does not waive the right of that owner to the surplus.
83	78		3.11 Sec. 3. Minnesota Statutes 2024, section 580.225, is amended to read:
84	79		3.12 580.225 SATISFACTION OF JUDGMENT MORTGAGE.
85	80		3.13 The amount received from foreclosure sale under this chapter is full satisfaction of the
86	81		3.14mortgage debt, except as provided in section 582.30.
87	82		3.15 Sec. 4. Minnesota Statutes 2024, section 580.24, is amended to read:
88	83		3.16 580.24 REDEMPTION BY CREDITOR.
89	84		3.17 (a) If no redemption is made by the mortgagor, the mortgagor's personal representatives
90	85		3.18or assigns, the most senior creditor having a legal or equitable lien upon the mortgaged
91	86		3.19premises, or some part of it, subsequent to the foreclosed mortgage, may redeem within
92	87		3.20seven 14 days after the expiration of the redemption period determined under section 580.23
93	88		3.21or 582.032, whichever is applicable; and each subsequent creditor having a lien may redeem,
94	89		3.22in the order of priority of their respective liens, within seven 14 days after the time allowed
95	90		3.23the prior lienholder by paying the amount required under this section. However, no creditor
96	91		3.24is entitled to redeem unless, one week or more prior to the expiration of the period allowed
97	92		3.25for redemption by the mortgagor, the creditor:
98	93		3.26 (1) records with each county recorder and registrar of titles where the foreclosed mortgage
99	94		3.27is recorded a notice of the creditor's intention to redeem;
100	95		3.28 (2) records with each county recorder and registrar of titles where the notice of the
101	96		3.29creditor's intention to redeem is recorded all documents necessary to create the lien on the
102	97		3.30mortgaged premises and to evidence the creditor's ownership of the lien, including a copy
103	98		3.31of any money judgment necessary to create the lien; and
104	99		3Sec. 4.
105		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 4.1 (3) after complying with clauses (1) and (2), delivers to the sheriff who conducted the
	100	+	REVISOR JSK/AD 25-0130312/13/24 4.1 (3) after complying with clauses (1) and (2), delivers to the sheriff who conducted the
106	101		4.2foreclosure sale or the sheriff's successor in office a copy of each of the documents required
107	102		4.3to be recorded under clauses (1) and (2), with the office, date and time of filing for record
108	103		4.4stated on the first page of each document.
109	104		4.5 The sheriff shall maintain for public inspection all documents delivered to the sheriff
110	105		4.6and shall note the date of delivery on each document. The sheriff may charge a fee of $100
111	106		4.7for the documents delivered to the sheriff relating to each lien. The sheriff shall maintain
112	107		4.8copies of documents delivered to the sheriff for a period of six months after the end of the
113	108		4.9mortgagor's redemption period.
114	109		4.10 (b) Saturdays, Sundays, legal holidays, and the first day following the expiration of the
115	110		4.11prior redemption period must be included in computing the seven-day14-day redemption
116	111		4.12period. When the last day of the period falls on Saturday, Sunday, or a legal holiday, that
117	112		4.13day must be omitted from the computation. The order of redemption by judgment creditors
118	113		4.14subsequent to the foreclosed mortgage shall be determined by the order in which their
119	114		4.15judgments were entered as memorials on the certificate of title for the foreclosed premises
120	115		4.16or docketed in the office of the district court administrator if the property is not registered
121	116		4.17under chapter 508 or 508A, regardless of the homestead status of the property. All mechanic's
122	117		4.18lienholders who have coordinate liens shall have one combined seven-day 14-day period
123	118		4.19to redeem.
124	119		4.20 (c) The amount required to redeem from the holder of the sheriff's certificate of sale is
125	120		4.21the amount required under section 580.23. The amount required to redeem from a person
126	121		4.22creditor holding a certificate of redemption is:
127	122		4.23 (1) the amount paid to redeem as shown on the certificate of redemption; plus
128	123		4.24 (2) interest on that amount to the date of redemption at the rates stated on the certificate
129	124		4.25of sale and the affidavit provided by section 580.25, clause (3), or six percent if no rate is
130	125		4.26otherwise stated; plus
131	126		4.27 (3) the amount claimed due on the person's creditor's lien, as shown on the affidavit
132	127		4.28under section 580.25, clause (3).
133	128		4.29 (d) If the sheriff determines there is a dispute or question of validity about a redemption,
134	129		4.30the sheriff may accept the amount required to redeem, together with documents in support
135	130		4.31of the redemption, from one or more creditors competing for or claiming a right to redeem,
136	131		4.32without executing and delivering a certificate of redemption, and the sheriff may commence
137	132		4.33an action under section 580.28 at no cost to the sheriff. A creditor subject to a dispute or
138	133		4.34question of validity about a redemption may submit the matter for adjudication of the court
139	134		4Sec. 4.
140		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 5.1under section 580.28. If the sheriff does not execute and deliver a certificate of redemption
	135	+	REVISOR JSK/AD 25-0130312/13/24 5.1under section 580.28. If the sheriff does not execute and deliver a certificate of redemption
141	136		5.2under this section, all further junior creditor redemption periods are stayed until determined
142	137		5.3by the court, and all junior creditors who have recorded notices of intent to redeem should
143	138		5.4be included in the action under section 580.28. The amount required to redeem may be paid
144	139		5.5to the holder of the sheriff's certificate of sale or the certificate of redemption, as the case
145	140		5.6may be, or to the sheriff for the holder.
146	141		5.7 EFFECTIVE DATE.This section is effective for redemptions occurring after January
147	142		5.81, 2026.
148	143		5.9 Sec. 5. Minnesota Statutes 2024, section 580.25, is amended to read:
149	144		5.10 580.25 CREDITOR REDEMPTION, HOW MADE.
150	145		5.11 Redemption shall be made as provided in this section.
151	146		5.12 The person creditor desiring to redeem shall pay the amount required by law for the
152	147		5.13redemption, and shall produce to the person or officer receiving the redemption payment:
153	148		5.14 (1) a copy of the docket of the judgment, or of the recorded deed or mortgage, or of the
154	149		5.15record or files evidencing any other lien under which the person creditor claims a right to
155	150		5.16redeem;
156	151		5.17 (2) a copy of any recorded assignment necessary to evidence the person's creditor's
157	152		5.18ownership of the lien. If the redemption is under an assignment of a judgment, the assignment
158	153		5.19shall be filed in the court entering the judgment, as provided by law, and the person creditor
159	154		5.20so redeeming shall produce a copy of it and of the record of its filing, and the copy of the
160	155		5.21docket shall show that the proper entry was made upon the docket. No further evidence of
161	156		5.22the assignment of the judgment is required unless the mortgaged premises or part of it is
162	157		5.23registered property, in which case the judgment and all assignments of the judgment must
163	158		5.24be entered as a memorial upon the certificate of title to the mortgaged premises and a copy
164	159		5.25of the judgment and each assignment with the certificate of record endorsed on it must be
165	160		5.26produced; and
166	161		5.27 (3) an affidavit of the person creditor or the person's creditor's agent, showing the amount
167	162		5.28then actually claimed due on the person's identifying the lien and required to be paid on the
168	163		5.29lien in order to redeem from the person under which the creditor claims a right to redeem
169	164		5.30and stating the amount then actually claimed due and owing on the lien and stating the
170	165		5.31interest rate on the lien. Additional fees and charges may be claimed due only as provided
171	166		5.32in section 582.03. The sheriff receiving the affidavit may furnish a copy of the affidavit to
172	167		5.33any interested party, upon request.
173	168		5Sec. 5.
174		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 6.1 If redemption is made to the sheriff, the sheriff may charge a fee of $250 for issuing the
	169	+	REVISOR JSK/AD 25-0130312/13/24 6.1 If redemption is made to the sheriff, the sheriff may charge a fee of $250 for issuing the
175	170		6.2certificate of redemption and any related service. No other fee may be charged by the sheriff
176	171		6.3for a redemption.
177	172		6.4 Within 24 hours after a redemption is made, or as soon as reasonably possible, the person
178	173		6.5redeeming shall cause the documents so required to be produced to be recorded with the
179	174		6.6county recorder, or registrar of titles, or both when appropriate, who may receive fees as
180	175		6.7prescribed in section 357.18 or 508.82. If the redemption is made at any place other than
181	176		6.8the county seat, it is sufficient forthwith to deposit the documents in the nearest post office,
182	177		6.9addressed to the recorder or registrar of titles, with the postage prepaid within 24 hours after
183	178		6.10redemption is made or as soon as reasonably possible. A person recording documents
184	179		6.11produced for redemption shall, on the same day, deliver copies of the documents to the
185	180		6.12sheriff for public inspection. The sheriff may receive a fee of $20 for the documents delivered
186	181		6.13following a redemption. The sheriff shall note the date of delivery on the documents and
187	182		6.14shall maintain for public inspection all documents delivered to the sheriff for a period of
188	183		6.15six months after the end of the mortgagor's redemption period.
189	184		6.16 EFFECTIVE DATE.This section is effective for redemptions occurring after January
190	185		6.171, 2026.
191	186		6.18 Sec. 6. Minnesota Statutes 2024, section 580.26, is amended to read:
192	187		6.19 580.26 CERTIFICATE OF REDEMPTION; RECORD.
193	188		6.20 The person or officer from whom such redemption is made shall make and deliver to
194	189		6.21the person redeeming a certificate executed and acknowledged in the same manner as a
195	190		6.22conveyance, containing:
196	191		6.23 (1) if redeemed under section 580.23 or 582.032, the name of the person mortgagor or
197	192		6.24the mortgagor's legal representative or assignee redeeming, and if redeemed under section
198	193		6.25580.25, the name of the creditor redeeming, and the amount paid by the person on such
199	194		6.26redemption to redeem;
200	195		6.27 (2) a description of the sale for which such redemption is made, and of the property
201	196		6.28redeemed;
202	197		6.29 (3) a statement of the claim upon which such redemption is made and, if upon a lien,
203	198		6.30the amount claimed to be due thereon at the date of redemption.
204	199		6.31 If redemption is made by the owner of the property sold, the owner's heirs, personal
205	200		6.32representatives, or assigns, such certificate shall be recorded within four days one week
206	201		6.33after the expiration of the period allowed by law to the owner for redemption and, if made
207	202		6Sec. 6.
208		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 7.1by a creditor holding a lien, the certificate shall be recorded within four days one week after
	203	+	REVISOR JSK/AD 25-0130312/13/24 7.1by a creditor holding a lien, the certificate shall be recorded within four days one week after
209	204		7.2such redemption. Unless so recorded, the certificate shall be void as only against any person
210	205		7.3in good faith redeeming from the same person or lien.
211	206		7.4 EFFECTIVE DATE.This section is effective for redemptions occurring after January
212	207		7.51, 2026.
213	208		7.6 Sec. 7. Minnesota Statutes 2024, section 580.28, is amended to read:
214	209		7.7 580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE; REDEMPTION.
215	210		7.8 When an action is brought wherein it is claimed that any mortgage as to the plaintiff or
216	211		7.9person for whose benefit the action is brought is fraudulent or void, or has been paid or
217	212		7.10discharged, in whole or in part, or the relative priority or the validity of liens, redemption
218	213		7.11rights, or rights to any surplus is disputed, if such mortgage has been foreclosed by
219	214		7.12advertisement, and the time for redemption from the foreclosure sale will expire before final
220	215		7.13judgment in such action, the plaintiff or beneficiary having the right to redeem, for the
221	216		7.14purpose of saving such right in case the action fails, may deposit with the sheriff before the
222	217		7.15time of redemption expires the amount for which the mortgaged premises were sold, with
223	218		7.16interest thereon to the time of deposit, together with a bond to the holder of the sheriff's
224	219		7.17certificate of sale, in an amount and with sureties to be approved by the sheriff, conditioned
225	220		7.18to pay all interest that may accrue or be allowed on such deposit if the action fail a separate
226	221		7.19deposit with the sheriff of one year's interest on the amount deposited. The person shall, in
227	222		7.20writing, notify such sheriff that the person claims the mortgage to be fraudulent or void, or
228	223		7.21to have been paid or discharged, in whole or in part, as the case may be, and that such action
229	224		7.22is pending, and direct the sheriff to retain such money and bond until final judgment or
230	225		7.23other order of the court. In case such action fails If so ordered by the court, such deposit
231	226		7.24shall operate as a redemption of the premises from such foreclosure sale, and entitle the
232	227		7.25plaintiff to a certificate thereof. Such foreclosure, deposit, bond, and notice shall be brought
233	228		7.26to the attention of the court by supplemental complaint in the action, and the judgment shall
234	229		7.27determine the validity of the foreclosure sale, and the rights of the parties to the moneys
235	230		7.28and bond so deposited, which shall be paid and delivered by the sheriff as directed by such
236	231		7.29judgment upon delivery to the sheriff of a certified copy thereof. The remedy herein provided
237	232		7.30shall be in addition to other remedies now existing.
238	233		7.31 EFFECTIVE DATE.This section is effective for redemptions occurring after January
239	234		7.321, 2026.
240	235		7Sec. 7.
241		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 8.1 Sec. 8. Minnesota Statutes 2024, section 582.03, subdivision 1, is amended to read:
	236	+	REVISOR JSK/AD 25-0130312/13/24 8.1 Sec. 8. Minnesota Statutes 2024, section 582.03, subdivision 1, is amended to read:
242	237		8.2 Subdivision 1.Allowable costs collectable upon redemption.The holder of any sheriff's
243	238		8.3certificate of sale, from a foreclosure by advertisement or action of a mortgage or lien or
244	239		8.4execution, or the holder of any certificate of redemption as a junior creditor during the
245	240		8.5period of redemption, may pay and claim the following on redemption: any taxes or
246	241		8.6assessments on which any penalty would otherwise accrue, and any costs of a hazard
247	242		8.7insurance policy for the holder's interest in the mortgaged premises incurred for the period
248	243		8.8of holding the sheriff's certificate, any costs incurred when an order to reduce a mortgagor's
249	244		8.9redemption period under section 582.032 is entered, including costs and disbursements
250	245		8.10awarded under section 582.032, subdivision 9, any fees paid to the county recorder, registrar
251	246		8.11of titles, or sheriff to obtain or record the certificates of sale or redemption or notices of
252	247		8.12intention to redeem, any reasonable fees paid to licensed real estate brokers for broker price
253	248		8.13opinions or to licensed appraisers for appraisals, any deed tax paid to file a certificate of
254	249		8.14redemption, reasonable attorney fees incurred after the foreclosure sale not to exceed one-half
255	250		8.15of the amount authorized by section 582.01, any costs incurred under section 582.031, and
256	251		8.16any interest or installment of principal upon any prior or superior mortgage, lien, or contract
257	252		8.17for deed in default or that becomes due during the period of redemption. In all such cases,
258	253		8.18the costs so paid and claimed due, with interest from the date of payment at the rate stated
259	254		8.19in the certificate of sale or at six percent if no rate is stated, shall be a part of the sum required
260	255		8.20to be paid to redeem from such sale. No other costs, fees, interest, or other amount may be
261	256		8.21added to the amount necessary to redeem.
262	257		8.22 EFFECTIVE DATE.This section is effective for affidavits filed with the sheriff after
263	258		8.23January 1, 2026.
264	259		8.24 Sec. 9. Minnesota Statutes 2024, section 582.03, subdivision 2, is amended to read:
265	260		8.25 Subd. 2.Affidavit of allowable costs.Any payments made and claimed due under
266	261		8.26subdivision 1 shall be proved by the affidavit of the holder of the sheriff's certificate or its
267	262		8.27agent or attorney, itemizing each of the allowable costs and the date of payment and
268	263		8.28describing the premises. The affidavit must be filed with the sheriff of the county in which
269	264		8.29the sale was held at any time prior to expiration of the mortgagor's redemption period. Upon
270	265		8.30written request by the sheriff, the holder of the sheriff's certificate or certificate of redemption
271	266		8.31shall provide an affidavit of allowable costs to the sheriff within seven days of the date of
272	267		8.32the request by the sheriff. If the mortgagor does not redeem within seven days after the
273	268		8.33affidavit is filed, the holder of the sheriff's certificate may file a supplemental affidavit if
274	269		8.34additional allowable costs are incurred during the redemption period. If the holder of the
275	270		8Sec. 9.
276		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 9.1sheriff's certificate or certificate of redemption fails to respond to the sheriff's request within
	271	+	REVISOR JSK/AD 25-0130312/13/24 9.1sheriff's certificate or certificate of redemption fails to respond to the sheriff's request within
277	272		9.2seven days, the sheriff may calculate a redemption amount pursuant to section 580.23,
278	273		9.3subdivision 1, and issue a certificate of redemption for that amount. If the time allowed to
279	274		9.4redeem is less than seven days from the expiration of the redemption period, the sheriff
280	275		9.5shall make a reasonable effort to request the affidavit of allowable costs in writing from the
281	276		9.6holder of the sheriff's certificate, its agent, or attorney before issuing a certificate of
282	277		9.7redemption. If the affidavit of allowable costs is not provided more than one business day
283	278		9.8before the expiration of the redemption period, at any time one business day or less before
284	279		9.9the expiration of the redemption period, the sheriff may calculate a redemption amount
285	280		9.10pursuant to section 580.23, subdivision 1, and issue a certificate of redemption for that
286	281		9.11amount. The amount calculated by the sheriff, absent malfeasance by the sheriff, binds the
287	282		9.12holder of the sheriff's certificate even if the amount calculated by the sheriff is less than the
288	283		9.13actual amount due.
289	284		9.14 EFFECTIVE DATE.This section is effective for affidavits filed with the sheriff after
290	285		9.15January 1, 2026.
291	286		9.16 Sec. 10. Minnesota Statutes 2024, section 582.043, subdivision 6, is amended to read:
292	287		9.17 Subd. 6.Dual tracking.(a) If the servicer has received a loss mitigation application and
293	288		9.18the subject mortgage loan has not already been referred to an attorney for foreclosure, a
294	289		9.19servicer shall not refer the subject mortgage loan to an attorney for foreclosure while the
295	290		9.20mortgagor's application is pending, unless:
296	291		9.21 (1) the servicer determines that the mortgagor is not eligible for any loss mitigation
297	292		9.22option, the servicer informs the mortgagor of the determination in writing, and the applicable
298	293		9.23appeal period has expired without an appeal or the appeal has been properly denied;
299	294		9.24 (2) where a written offer is made and a written acceptance is required, the mortgagor
300	295		9.25fails to accept the loss mitigation offer within the time frame specified in the offer or within
301	296		9.2614 days after the date of the offer, whichever is longer; or
302	297		9.27 (3) the mortgagor declines the loss mitigation offer in writing.
303	298		9.28 (b) If the servicer receives a loss mitigation application after the subject mortgage loan
304	299		9.29has been referred to an attorney for foreclosure, but before a foreclosure sale has been
305	300		9.30scheduled, a servicer shall not move for an order of foreclosure, seek a foreclosure judgment,
306	301		9.31or conduct a foreclosure sale unless:
307	302		9Sec. 10.
308		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~ 10.1 (1) the servicer determines that the mortgagor is not eligible for a loss mitigation option,
	303	+	REVISOR JSK/AD 25-0130312/13/24 10.1 (1) the servicer determines that the mortgagor is not eligible for a loss mitigation option,
309	304		10.2the servicer informs the mortgagor of this determination in writing, and the applicable appeal
310	305		10.3period has expired without an appeal or the appeal has been properly denied;
311	306		10.4 (2) where a written offer is made and a written acceptance is required, the mortgagor
312	307		10.5fails to accept the loss mitigation offer within the time frame specified in the offer or within
313	308		10.614 days after the date of the offer, whichever is longer; or
314	309		10.7 (3) the mortgagor declines a loss mitigation offer in writing.
315	310		10.8 (c) If the servicer receives a loss mitigation application after the foreclosure sale has
316	311		10.9been scheduled, but before midnight of the seventh business day prior to the foreclosure
317	312		10.10sale date, the servicer must halt the foreclosure sale and evaluate the application. If required
318	313		10.11to halt the foreclosure sale and evaluate the application, the servicer may cancel the
319	314		10.12foreclosure sale or postpone the foreclosure sale under section 580.07, subdivision 1, but
320	315		10.13must not move for an order of foreclosure, seek a foreclosure judgment, or conduct a
321		-	10.14foreclosure sale unless 60 days have passed since the occurrence of one of the following,
	316	+	10.14foreclosure sale unless 30 days have passed since the occurrence of one of the following,
322	317		10.15whichever is applicable:
323	318		10.16 (1) the servicer determines that the mortgagor is not eligible for a loss mitigation option,
324	319		10.17the servicer informs the mortgagor of this determination in writing, and the applicable appeal
325	320		10.18period has expired without an appeal or the appeal has been properly denied;
326	321		10.19 (2) where a written offer is made and a written acceptance is required, the mortgagor
327	322		10.20fails to accept the loss mitigation offer within the time frame specified in the offer or within
328	323		10.2114 days after the date of the offer, whichever is longer; or
329	324		10.22 (3) the mortgagor declines a loss mitigation offer in writing.
330	325		10.23 (d) A servicer shall not move for an order of foreclosure or conduct a foreclosure sale
331	326		10.24under any of the following circumstances:
332	327		10.25 (1) the mortgagor is in compliance with the terms of a trial or permanent loan
333	328		10.26modification, or other loss mitigation option; or
334	329		10.27 (2) a short sale has been approved by all necessary parties and proof of funds or financing
335	330		10.28has been provided to the servicer.
336	331		10Sec. 10.
337		-	REVISOR JSK ~~H1027-1~~~~HF1027 FIRST ENGROSSMENT~~
	332	+	REVISOR JSK/AD 25-0130312/13/24