HF 1518

as introduced - 87th Legislature (2011 - 2012) Posted on 04/18/2011 09:33am

A bill for an act
relating to real estate; regulating the purchase of real estate during the redemption
period following a sheriff's sale; amending Minnesota Statutes 2010, section
580.06, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 580.06, subdivision 2, is amended to read:

Subd. 2.

Notice of results of sale required; contents.

(a) Except as provided in
paragraph (c), a person attempting to acquire fee title to the mortgagor's property directly
from the mortgagor following the sheriff's sale and prior to the end of the redemption
period must provide to the mortgagor, by personal delivery three days prior to entering into
an agreement with the mortgagor to acquire title, notice of the results of the foreclosure
as provided under paragraph (b).

(b) The notice required under paragraph (a) must contain the following information:

(1) the date the sale occurred;

(2) the identity of the purchaser and any assignees of the purchaser;

(3) the sheriff's sale price; and

(4) the following statement: "There are very important things you need to know now
that your house has been auctioned at the sheriff's sale:

(i) you have (insert the number of months) to "redeem," which means to pay the
winning bidder the sale price listed above (plus interest and costs) and keep your house;

(ii) whether you can pay off the amount or not, YOU DO NOT HAVE TO MOVE
RIGHT AWAY. YOU CAN KEEP LIVING IN YOUR HOME until the end of this
redemption period;

(iii) read all notices and documents related to the foreclosure of your home carefully!
THE AMOUNT YOU NEED TO PAY THE WINNING BIDDER TO REDEEM YOUR
HOUSE (THE SHERIFF'S SALE PRICE LISTED ABOVE, PLUS INTEREST AND
COSTS) MAY BE LESS THAN THE AMOUNT YOU OWED ON YOUR MORTGAGE
BEFORE THE SHERIFF'S SALE; and

(iv) you can also try to sell your home during this "redemption period." You must sell
it for enough to pay off the winning bidder from the sheriff's sale and pay interest, fees, and
other claims against the property. You can also enter into a "short sale." A short sale is an
agreement in which the lender accepts less than the full amount you owe on the mortgage.

If there is any money left from the sale of the house after all these debts are paid,
you can keep the money.

For more information and advice, contact an attorney or a mortgage
foreclosure prevention counselor. You can find a mortgage foreclosure prevention
counselor in your county by calling the Minnesota Home Ownership Center
at 651-659-9336 or 866-462-6466 or www.hocmn.org or contact the United
States Department of Housing and Urban Development at 1-800-569-4287 or
www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search=MN#searchArea."

(c) This subdivision does not apply to:

(1) a seller or buyer who has entered into a signed agency agreement, facilitator
agreement, or other written agreement to buy or sell the mortgagor's property with a
person licensed under chapter 82;

(2) a buyer who deleted text begin offers to buy the mortgagor's property for a purchase price that
meets or exceeds the amount required to be paid by the mortgagor to redeem the property,
unless the buyer or the mortgagor enters into a short sale agreement with the holder of the
sheriff's certificate in which the holder agrees to accept less than the full amount required
to redeem deleted text end new text begin has a prior personal relationship with the foreclosed homeowner new text end ;

(3) a foreclosing lender acquiring the mortgagor's property by a deed in lieu of
foreclosure;

(4) a nonprofit lender holding a certificate of exemption from the Department of
Commerce; or

(5) the state or a local unit of government or an agent of the state or a local unit
of government.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosure sales conducted on or
after the day following final enactment.
new text end