SF 1962

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 11/05/2025 01:42 p.m.

A bill for an act
relating to mortgages; modifying provisions governing postponement of
foreclosures by action; amending Minnesota Statutes 2024, sections 580.07,
subdivisions 1, 2; 581.02.

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

Section 1.

Minnesota Statutes 2024, section 580.07, subdivision 1, is amended to read:

Subdivision 1.

Postponement by mortgagee.

(a) The sale may be postponed, from time
to time, by the party conducting the foreclosure. The party requesting the postponement
must, at the party's expense:

(1) publish, only once, a notice of the postponement and the rescheduled date of the sale,
if known, as soon as practicable, in the newspaper in which the notice under section 580.03
was published; and

(2) send by first class mail to the occupant, postmarked within three business days of
the postponed sale, notice:

(i) of the postponement; and

(ii) if known, of the rescheduled date of the sale and the date on or before which the
mortgagor must vacate the property if the sheriff's sale is not further postponed, the mortgage
is not reinstated under section 580.30, the property is not redeemed under section 580.23,
or the redemption period is not reduced under section 582.032. The notice must state that
the time to vacate the property is 11:59 p.m. on the specified date.

(b) If the rescheduled date of the sale is not known at the time of the initial publication
and notice to the occupant of postponement, the foreclosing party must, at its expense if
and when a new date of sale is scheduled:

(1) publish, only once, notice of the rescheduled date of the sale, as soon as practicable,
in the newspaper in which the notice under section 580.03 and the notice of postponement
under paragraph (a) was published; and

(2) send by first class mail to the occupant, postmarked within ten days of the rescheduled
sale, notice:

(i) of the date of the rescheduled sale; and

(ii) of the date on or before which the mortgagor must vacate the property if the mortgage
is not reinstated under section 580.30 or the property redeemed under section 580.23. The
notice must state that the time to vacate the property is 11:59 p.m. on the specified date.

new text begin (c) The right of a mortgagee to postpone a foreclosure sale under this section applies to
a foreclosure by action taken under chapter 581.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 580.07, subdivision 2, is amended to read:

Subd. 2.

Postponement by mortgagor or owner.

(a) If all or a part of the property to
be sold is classified as homestead under section 273.124 and contains one to four dwelling
units, the mortgagor or owner may, in the manner provided in this subdivision, postpone
the sale to the first date that is not a Saturday, Sunday, or legal holiday and is:

(1) five months after the originally scheduled date of sale if the original redemption
period was six months under section 580.23, subdivision 1; or

(2) 11 months after the originally scheduled date of sale if the original redemption period
was 12 months under section 580.23, subdivision 2. To postpone a foreclosure sale pursuant
to this subdivision, at any time after the first publication of the notice of mortgage foreclosure
sale under section 580.03 but at least 15 days prior to the scheduled sale date specified in
that notice, the mortgagor shall: (1) execute a sworn affidavit in the form set forth in
subdivision 3, (2) record the affidavit in the office of each county recorder and registrar of
titles where the mortgage was recorded, and (3) file with the sheriff conducting the sale and
deliver to the attorney foreclosing the mortgage a copy of the recorded affidavit, showing
the date and office in which the affidavit was recorded. Recording of the affidavit and
postponement of the foreclosure sale pursuant to this subdivision shall automatically reduce
the mortgagor's redemption period under section 580.23 to five weeks. The postponement
of a foreclosure sale pursuant to this subdivision does not require any change in the contents
of the notice of sale, service of the notice of sale if the occupant was served with the notice
of sale prior to postponement under this subdivision, or publication of the notice of sale if
publication was commenced prior to postponement under this subdivision, notwithstanding
the service and publication time periods specified in section 580.03, but the sheriff's
certificate of sale shall indicate the actual date of the foreclosure sale and the actual length
of the mortgagor's redemption period. No notice of postponement need be published. An
affidavit complying with subdivision 3 shall be prima facie evidence of the facts stated
therein, and shall be entitled to be recorded. The right to postpone a foreclosure sale pursuant
to this subdivision may be exercised only once, regardless whether the mortgagor reinstates
the mortgage prior to the postponed mortgage foreclosure sale.

(b) If the automatic stay under United States Code, title 11, section 362, applies to the
mortgage foreclosure after a mortgagor or owner requests postponement of the sheriff's sale
under this section, then when the automatic stay is no longer applicable, the mortgagor's or
owner's election to shorten the redemption period to five weeks under this section remains
applicable to the mortgage foreclosure.

(c) Except for the circumstances set forth in paragraph (b), this section does not reduce
the mortgagor's redemption period under section 580.23 for any subsequent foreclosure of
the mortgage.

new text begin (d) The right of a mortgagor or owner to postpone a foreclosure sale under this section
applies to a foreclosure by action taken under chapter 581.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 581.02, is amended to read:

581.02 APPLICATION, CERTAIN SECTIONS.

new text begin (a) new text end The provisions of sections 580.08, 580.09, 580.12, 580.22, 580.25, and 580.27, so
far as they relate to the form of the certificate of sale, shall apply to and govern the
foreclosure of mortgages by action.

new text begin (b) Section 580.07 applies to actions for the foreclosure of mortgages taken under this
chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, for judicial foreclosures
with the lis pendens recorded on or after the effective date.
new text end