| 6 | | - | 1.6 Section 1. Minnesota Statutes 2024, section 580.07, subdivision 1, is amended to read: |
|---|
| 7 | | - | 1.7 Subdivision 1.Postponement by mortgagee.(a) The sale may be postponed, from time |
|---|
| 8 | | - | 1.8to time, by the party conducting the foreclosure. The party requesting the postponement |
|---|
| 9 | | - | 1.9must, at the party's expense: |
|---|
| 10 | | - | 1.10 (1) publish, only once, a notice of the postponement and the rescheduled date of the sale, |
|---|
| 11 | | - | 1.11if known, as soon as practicable, in the newspaper in which the notice under section 580.03 |
|---|
| 12 | | - | 1.12was published; and |
|---|
| 13 | | - | 1.13 (2) send by first class mail to the occupant, postmarked within three business days of |
|---|
| 14 | | - | 1.14the postponed sale, notice: |
|---|
| 15 | | - | 1.15 (i) of the postponement; and |
|---|
| 16 | | - | 1.16 (ii) if known, of the rescheduled date of the sale and the date on or before which the |
|---|
| 17 | | - | 1.17mortgagor must vacate the property if the sheriff's sale is not further postponed, the mortgage |
|---|
| 18 | | - | 1.18is not reinstated under section 580.30, the property is not redeemed under section 580.23, |
|---|
| 19 | | - | 1.19or the redemption period is not reduced under section 582.032. The notice must state that |
|---|
| 20 | | - | 1.20the time to vacate the property is 11:59 p.m. on the specified date. |
|---|
| 6 | + | 1.6 Section 1. Minnesota Statutes 2024, section 58.13, is amended by adding a subdivision |
|---|
| 7 | + | 1.7to read: |
|---|
| 8 | + | 1.8 Subd. 3.Due-on-sale clauses; limitation.(a) With respect to a loan secured by residential |
|---|
| 9 | + | 1.9real estate, a lender is prohibited from exercising a due-on-sale clause with respect to the |
|---|
| 10 | + | 1.10following: |
|---|
| 11 | + | 1.11 (1) a transfer-on-death deed that conveys or assigns the deceased borrower's interest in |
|---|
| 12 | + | 1.12the residential real estate to a grantee beneficiary; |
|---|
| 13 | + | 1.13 (2) a transfer by devise, decent, or operation of law upon a joint tenant's death; |
|---|
| 14 | + | 1.14 (3) a transfer by which the borrower's spouse or children become an owner of the |
|---|
| 15 | + | 1.15residential real estate; |
|---|
| 16 | + | 1.16 (4) a transfer resulting from a dissolution of marriage decree, legal separation agreement, |
|---|
| 17 | + | 1.17or incidental property settlement agreement by which the borrower's spouse becomes an |
|---|
| 18 | + | 1.18owner of the residential real estate; or |
|---|
| 19 | + | 1.19 (5) a transfer into an inter vivos trust by which the borrower is and remains a beneficiary, |
|---|
| 20 | + | 1.20and that does not relate to a transfer of occupancy rights in the residential real estate. |
|---|
| 21 | + | 1.21 (b) Paragraph (a) does not apply to a reverse mortgage made under section 47.58. |
|---|
| 30 | | - | The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law |
|---|
| 31 | | - | Adoption of Report: Amended and re-referred to the Committee on Commerce Finance and Policy03/24/2025 2.1 (b) If the rescheduled date of the sale is not known at the time of the initial publication |
|---|
| 32 | | - | 2.2and notice to the occupant of postponement, the foreclosing party must, at its expense if |
|---|
| 33 | | - | 2.3and when a new date of sale is scheduled: |
|---|
| 34 | | - | 2.4 (1) publish, only once, notice of the rescheduled date of the sale, as soon as practicable, |
|---|
| 35 | | - | 2.5in the newspaper in which the notice under section 580.03 and the notice of postponement |
|---|
| 36 | | - | 2.6under paragraph (a) was published; and |
|---|
| 37 | | - | 2.7 (2) send by first class mail to the occupant, postmarked within ten days of the rescheduled |
|---|
| 38 | | - | 2.8sale, notice: |
|---|
| 39 | | - | 2.9 (i) of the date of the rescheduled sale; and |
|---|
| 40 | | - | 2.10 (ii) of the date on or before which the mortgagor must vacate the property if the mortgage |
|---|
| 41 | | - | 2.11is not reinstated under section 580.30 or the property redeemed under section 580.23. The |
|---|
| 42 | | - | 2.12notice must state that the time to vacate the property is 11:59 p.m. on the specified date. |
|---|
| 43 | | - | 2.13 (c) The right of a mortgagee to postpone a foreclosure sale under this section applies to |
|---|
| 44 | | - | 2.14a foreclosure by action taken under chapter 581. |
|---|
| 45 | | - | 2.15 EFFECTIVE DATE.This section is effective August 1, 2025, for judicial foreclosures |
|---|
| 46 | | - | 2.16with the lis pendens recorded on or after the effective date. |
|---|
| 47 | | - | 2.17 Sec. 2. Minnesota Statutes 2024, section 580.07, subdivision 2, is amended to read: |
|---|
| 48 | | - | 2.18 Subd. 2.Postponement by mortgagor or owner.(a) If all or a part of the property to |
|---|
| 49 | | - | 2.19be sold is classified as homestead under section 273.124 and contains one to four dwelling |
|---|
| 50 | | - | 2.20units, the mortgagor or owner may, in the manner provided in this subdivision, postpone |
|---|
| 51 | | - | 2.21the sale to the first date that is not a Saturday, Sunday, or legal holiday and is: |
|---|
| 52 | | - | 2.22 (1) five months after the originally scheduled date of sale if the original redemption |
|---|
| 53 | | - | 2.23period was six months under section 580.23, subdivision 1; or |
|---|
| 54 | | - | 2.24 (2) 11 months after the originally scheduled date of sale if the original redemption period |
|---|
| 55 | | - | 2.25was 12 months under section 580.23, subdivision 2. To postpone a foreclosure sale pursuant |
|---|
| 56 | | - | 2.26to this subdivision, at any time after the first publication of the notice of mortgage foreclosure |
|---|
| 57 | | - | 2.27sale under section 580.03 but at least 15 days prior to the scheduled sale date specified in |
|---|
| 58 | | - | 2.28that notice, the mortgagor shall: (1) execute a sworn affidavit in the form set forth in |
|---|
| 59 | | - | 2.29subdivision 3, (2) record the affidavit in the office of each county recorder and registrar of |
|---|
| 60 | | - | 2.30titles where the mortgage was recorded, and (3) file with the sheriff conducting the sale and |
|---|
| 61 | | - | 2.31deliver to the attorney foreclosing the mortgage a copy of the recorded affidavit, showing |
|---|
| 62 | | - | 2.32the date and office in which the affidavit was recorded. Recording of the affidavit and |
|---|
| 63 | | - | 2Sec. 2. |
|---|
| 64 | | - | REVISOR RSI H1224-1HF1224 FIRST ENGROSSMENT 3.1postponement of the foreclosure sale pursuant to this subdivision shall automatically reduce |
|---|
| 65 | | - | 3.2the mortgagor's redemption period under section 580.23 to five weeks. The postponement |
|---|
| 66 | | - | 3.3of a foreclosure sale pursuant to this subdivision does not require any change in the contents |
|---|
| 67 | | - | 3.4of the notice of sale, service of the notice of sale if the occupant was served with the notice |
|---|
| 68 | | - | 3.5of sale prior to postponement under this subdivision, or publication of the notice of sale if |
|---|
| 69 | | - | 3.6publication was commenced prior to postponement under this subdivision, notwithstanding |
|---|
| 70 | | - | 3.7the service and publication time periods specified in section 580.03, but the sheriff's |
|---|
| 71 | | - | 3.8certificate of sale shall indicate the actual date of the foreclosure sale and the actual length |
|---|
| 72 | | - | 3.9of the mortgagor's redemption period. No notice of postponement need be published. An |
|---|
| 73 | | - | 3.10affidavit complying with subdivision 3 shall be prima facie evidence of the facts stated |
|---|
| 74 | | - | 3.11therein, and shall be entitled to be recorded. The right to postpone a foreclosure sale pursuant |
|---|
| 75 | | - | 3.12to this subdivision may be exercised only once, regardless whether the mortgagor reinstates |
|---|
| 76 | | - | 3.13the mortgage prior to the postponed mortgage foreclosure sale. |
|---|
| 77 | | - | 3.14 (b) If the automatic stay under United States Code, title 11, section 362, applies to the |
|---|
| 78 | | - | 3.15mortgage foreclosure after a mortgagor or owner requests postponement of the sheriff's sale |
|---|
| 79 | | - | 3.16under this section, then when the automatic stay is no longer applicable, the mortgagor's or |
|---|
| 80 | | - | 3.17owner's election to shorten the redemption period to five weeks under this section remains |
|---|
| 81 | | - | 3.18applicable to the mortgage foreclosure. |
|---|
| 82 | | - | 3.19 (c) Except for the circumstances set forth in paragraph (b), this section does not reduce |
|---|
| 83 | | - | 3.20the mortgagor's redemption period under section 580.23 for any subsequent foreclosure of |
|---|
| 84 | | - | 3.21the mortgage. |
|---|
| 85 | | - | 3.22 (d) The right of a mortgagor or owner to postpone a foreclosure sale under this section |
|---|
| 86 | | - | 3.23applies to a foreclosure by action taken under chapter 581. |
|---|
| 87 | | - | 3.24 EFFECTIVE DATE.This section is effective August 1, 2025, for judicial foreclosures |
|---|
| 88 | | - | 3.25with the lis pendens recorded on or after the effective date. |
|---|
| 89 | | - | 3.26 Sec. 3. Minnesota Statutes 2024, section 581.02, is amended to read: |
|---|
| 90 | | - | 3.27 581.02 APPLICATION, CERTAIN SECTIONS. |
|---|
| 91 | | - | 3.28 (a) The provisions of sections 580.08, 580.09, 580.12, 580.22, 580.25, and 580.27, so |
|---|
| 92 | | - | 3.29far as they relate to the form of the certificate of sale, shall apply to and govern the |
|---|
| 93 | | - | 3.30foreclosure of mortgages by action. |
|---|
| 94 | | - | 3.31 (b) Section 580.07 applies to actions for the foreclosure of mortgages taken under this |
|---|
| 95 | | - | 3.32chapter. |
|---|
| 96 | | - | 3Sec. 3. |
|---|
| 97 | | - | REVISOR RSI H1224-1HF1224 FIRST ENGROSSMENT 4.1 EFFECTIVE DATE.This section is effective August 1, 2025, for judicial foreclosures |
|---|
| 98 | | - | 4.2with the lis pendens recorded on or after the effective date. |
|---|
| 99 | | - | 4Sec. 3. |
|---|
| 100 | | - | REVISOR RSI H1224-1HF1224 FIRST ENGROSSMENT |
|---|
| 31 | + | The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law 2.1 (c) Notwithstanding section 58.18, subdivision 4, a person aggrieved by a violation of |
|---|
| 32 | + | 2.2this subdivision has a private right of action for equitable relief, reasonable attorney fees, |
|---|
| 33 | + | 2.3and costs. |
|---|
| 34 | + | 2Section 1. |
|---|
| 35 | + | REVISOR RSI/KR 25-0229701/31/25 |
|---|