SF 4747

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/14/2026 09:40 a.m.

A bill for an act
relating to real property; modifying the mortgage foreclosure process to allow for
online sales and private selling officers; amending Minnesota Statutes 2024,
sections 580.032, subdivisions 6, 7; 580.04; 580.041, subdivisions 2, 2a; 580.042,
subdivision 3; 580.06; 580.09; 580.11; 580.12; 580.14; 580.19; 580.23, subdivision
1; 580.30, subdivision 2; 582.031; 582.032, subdivisions 4, 5, 7, 9; 582.041,
subdivision 2; 582.042, subdivisions 3, 4; 582.25; Minnesota Statutes 2025
Supplement, sections 580.07, subdivisions 1, 2; 580.10, by adding a subdivision;
580.24; 582.03, subdivisions 1, 2; proposing coding for new law in Minnesota
Statutes, chapter 580.

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

Section 1.

Minnesota Statutes 2024, section 580.032, subdivision 6, is amended to read:

Subd. 6.

Remedies.

If notice of the sale is not mailed in accordance with subdivision 4
to a person with a properly recorded request for notice, the person requesting notice has a
cause of action against the person foreclosing the mortgage for money damages for the
lesser of: (1) the equity in the mortgaged premises that would have been available to the
person if the person had redeemed; or (2) the value of the person's redeemable interest. The
value of a lienholder's redeemable interest is the amount due on and secured by the lien.
The person requesting notice has the burden of proving that the notice of the sale was not
mailed in accordance with subdivision 4 and that the person requesting notice had a valid
redeemable interest in the mortgaged premises, had measurable damages, had the financial
ability to redeem, and did not have actual notice of the sale at least 60 days before expiration
of the mortgagor's period of redemption. An action for damages resulting from failure to
mail notice must be brought within two years of the date of the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end
sale.

Sec. 2.

Minnesota Statutes 2024, section 580.032, subdivision 7, is amended to read:

Subd. 7.

Exception to damage claim.

Notwithstanding subdivision 6, if notice was not
mailed in accordance with subdivision 4 to a person requesting notice, the requester has no
cause of action against the person foreclosing the mortgage if at least 60 days before the
mortgagor's period of redemption expires, a copy of the deleted text begin sheriff's deleted text end certificate of sale is mailed
in the manner provided in this section to the person requesting notice.

Sec. 3.

Minnesota Statutes 2024, section 580.04, is amended to read:

580.04 REQUISITES OF NOTICE.

(a) Each notice shall specify or contain:

(1) the name of the mortgagor, the mortgagee, each assignee of the mortgage, if any,
and the original or maximum principal amount secured by the mortgage;

(2) the date of the mortgage, and when and where recorded, except where the mortgage
is upon registered land, in which case the notice shall state that fact, and when and where
registered;

(3) the amount claimed to be due on the mortgage on the date of the notice;

(4) a description of the mortgaged premises, conforming substantially to that contained
in the mortgage, and the commonly used street address of the mortgaged premises;

(5) the new text begin information about the sale, including:
new text end

new text begin (i) the new text end time and place of sale new text begin ;
new text end

new text begin (ii) if the sale is to take place online, the website where the sale will be held; and
new text end

new text begin (iii) if the sale will be held by a private selling officer described in section 580.065, the
name and telephone number of the private selling officer new text end ;

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's personal
representatives or assigns; and

(7) for mortgaged premises described in section 582.032, subdivision 1, the following
statement in capital letters: "THE TIME ALLOWED BY LAW FOR REDEMPTION BY
THE MORTGAGOR, THE MORTGAGOR'S PERSONAL REPRESENTATIVES OR
ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A JUDICIAL ORDER IS ENTERED
UNDER MINNESOTA STATUTES, SECTION 582.032, DETERMINING, AMONG
OTHER THINGS, THAT THE MORTGAGED PREMISES ARE IMPROVED WITH A
RESIDENTIAL DWELLING OF LESS THAN FIVE UNITS, ARE NOT PROPERTY
USED IN AGRICULTURAL PRODUCTION, AND ARE ABANDONED."

(b) If the real estate is an owner-occupied, single-family dwelling, the notice must also
specify 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.

Sec. 4.

Minnesota Statutes 2024, section 580.041, subdivision 2, is amended to read:

Subd. 2.

Content of foreclosure advice notice.

The foreclosure advice notice required
by this section must appear substantially as follows:

"Help For Homeowners in Foreclosure

	The attorney preparing this foreclosure is: .
			(Attorney name, address, phone)
	It is being prepared for:
	.
	(Lender name, loss mitigation phone number)

AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring your
mortgage up to date (or "reinstate" your mortgage). You must pay this amount, plus
interest and other costs, to keep your house from going through a deleted text begin sheriff's deleted text end new text begin mortgage
foreclosure new text end sale. The deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale is scheduled for [insert date] at
[insert time] at [insert place].

Mortgage foreclosure is a complex process. People may contact you with advice and
offers to help "save" your home.

Remember: It is important that you learn as much as you can about foreclosure and
your situation. Find out about all your options before you make any agreements with
anyone about the foreclosure of your home.

Getting Help

As soon as possible, you should contact your lender at the above number to talk about
things you might be able to do to prevent foreclosure. You should also consider contacting
the foreclosure prevention counselor in your area. A foreclosure prevention counselor
can answer your questions, offer free advice, and help you create a plan which makes
sense for your situation.

Contact 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 to get the phone number and location
of the nearest certified counseling organization. Call today. The longer you wait, the
fewer options you may have for a desirable result."

Sec. 5.

Minnesota Statutes 2024, section 580.041, subdivision 2a, is amended to read:

Subd. 2a.

Content of notice of redemption rights.

The notice of redemption rights
required by this section must appear substantially as follows:

"What Happens After the Foreclosure Sale

After the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale, you have the right to "redeem." Redeem means
that you pay the amount bid for your house at the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale, plus
interest and costs, to keep your house. You can keep living in your home for a period of
time after the foreclosure sale. This is called a "redemption period." The redemption period
is [insert number of months] months after the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale.

At the end of the redemption period, if you do not redeem or sell, you will have to leave
your home. If you do not leave, the person or company that bid on your home at the deleted text begin sheriff's deleted text end new text begin
mortgage foreclosure new text end sale has the right to file an eviction against you in court.

Be Careful of Foreclosure Scams

Be careful! After the foreclosure sale, people may approach you to buy your house or
ask you to transfer your house to them for little or no money.

Before you give up the rights to your house or sign any documents (including a deed),
be sure you know how much the house sold for at the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale
and decide if you can save the house by paying the amount of the bid, plus interest and
costs.

How to Find Out How Much Your House Sold For at the Foreclosure Sale

The amount you need to pay to redeem your house may be less than the amount you
owed on the mortgage before the sale. You can learn what this amount is (and who the
winning bidder at the sale was) by attending the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale or by
contacting the sheriff's office after the sale.

You Can Also Sell Your House

During the redemption period, if you sell your home, you must sell it for enough to pay
off the winning bidder from the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale and pay interest, fees,
and other claims against the property. If there is any money left from the sale of the house
after all these debts are paid, you can keep the money. You can also enter into a "short sale."
A short sale is an agreement in which the lender agrees to accept less than the full amount
you owe on the mortgage.

Get More Information and Advice

For more information and advice, contact an attorney or a mortgage foreclosure
prevention counselor. You can find a mortgage foreclosure prevention counselor by
contacting 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 to get the phone number and location of the nearest
certified counseling organization."

Sec. 6.

Minnesota Statutes 2024, section 580.042, subdivision 3, is amended to read:

Subd. 3.

Content of notice.

The notice required by this section must appear substantially
as follows.

"Foreclosure: Advice to Tenants

You are renting in a property that is in foreclosure. Minnesota law requires that we send
you this notice about the foreclosure process. Please read it carefully.

The mortgage foreclosure does not change the terms of your lease. You and your
landlord must continue to follow the terms of your lease, including the rights and
responsibilities of you and your landlord. You must keep paying rent unless you have
a legal reason to withhold it. Your landlord must keep the property repaired. Utilities
must be paid under the terms of your lease or under state law.

Moving out of the property early might be a violation of your lease. The date of the
deleted text begin sheriff's deleted text end new text begin mortgage new text end foreclosure sale is in the attached foreclosure notice. In most cases you
do not need to move from the property before the deleted text begin sheriff's deleted text end new text begin mortgage new text end foreclosure sale. Read
your lease to see if it says anything about foreclosure and about the rights you may have if
the property is in foreclosure. If you have a month-to-month lease, the foreclosure notice
does not change the rules for ending your lease. You and your landlord must still give legal
notice to end your lease.

In most cases, your landlord has six months after the date of the deleted text begin sheriff's deleted text end new text begin mortgage new text end
foreclosure sale to pay off the mortgage. This is called the "redemption period." Read the
attached foreclosure notice to determine the length of the redemption period. You cannot
be asked to move during the redemption period except for lease violations or if your lease
expires during the redemption period. If your landlord stops the foreclosure, you may not
have to move from the property. If your landlord does not stop the foreclosure, there will
be a new owner of the property at the end of the redemption period.

The new owner may have the legal right to ask you to move even if your lease is not
over. But, the new owner must still give you a written notice stating that the new owner
wants you to move.

Do not wait to get information about foreclosure. Mortgage foreclosure is a complicated
process. It is important you learn about your rights as a renter when there is a mortgage
foreclosure. You may have fewer options if you wait too long. There are government agencies
and nonprofit organizations that you may contact for helpful information about the foreclosure
process. For the name and telephone number of an organization near you, please call the
legal aid office or bar association office in your county. You also can find information on
tenant rights at HOME Line at [phone] and Law Help Minnesota at
http://www.LawHelpMN.org. The state of Minnesota does not guarantee the advice of these
agencies and organizations."

Sec. 7.

Minnesota Statutes 2024, section 580.06, is amended to read:

580.06 SALE, HOW AND BY WHOM MADE.

The sale shall be made by the sheriff deleted text begin or deleted text end new text begin , new text end the sheriff's deputy new text begin , or the private selling officer
appointed by the mortgagee as provided in section 580.065, new text end at public venue to the highest
bidder, in the county in which the premises to be sold, or some part thereof, are situated,
between 9:00 a.m. and 4:00 p.m. new text begin or online as provided in section 580.31.
new text end

Sec. 8.

new text begin [580.065] PRIVATE SELLING OFFICER APPOINTMENT.
new text end

new text begin (a) The mortgagee may, in its sole discretion, appoint a private selling officer to conduct
the sale of the property at a public venue within the county in which the premises to be sold
is situated or online. A private selling officer is a person or entity licensed as a real estate
broker or salesperson under chapter 82 or an auctioneer under chapter 330 and whose license
is in good standing.
new text end

new text begin (b) If the mortgagee elects to appoint a private selling officer to conduct the sale, the
mortgagee is solely responsible for any fees or costs due to the private selling officer for
services rendered. No fees or costs associated with the private selling officer may, through
any mechanism, be passed to the mortgagor.
new text end

new text begin (c) If a private selling officer is appointed as provided by this section, all tasks necessary
to effectuate the foreclosure sale remain with the sheriff or sheriff's deputy aside from the
conducting of the sale, which shall be undertaken by the private selling officer duly appointed
under this section.
new text end

new text begin (d) Upon completing a foreclosure sale by the private selling officer, the private selling
officer shall provide to the sheriff of the county in which the property is situated:
new text end

new text begin (1) the address of the property sold;
new text end

new text begin (2) the time and place of the sale;
new text end

new text begin (3) the price at which the property was sold;
new text end

new text begin (4) the name of the purchaser and vesting information;
new text end

new text begin (5) contact information for the purchaser, including telephone number and mailing
address;
new text end

new text begin (6) the purchase funds collected from the buyer; and
new text end

new text begin (7) a copy of the certificate of sale provided to the purchaser.
new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, 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 deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end 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.

(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 begin (d) If the sale is to take place online as contemplated in section 580.31, in addition to
the publication required in this subdivision, the rescheduled date of sale must also be
published on the website hosting the sale.
new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, 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: (i) execute a sworn affidavit in the form set forth in
subdivision 3, (ii) record the affidavit in the office of each county recorder and registrar of
titles where the mortgage was recorded, and (iii) file with the deleted text begin sheriff deleted text end new text begin person new text end 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 deleted text begin sheriff's deleted text end 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 deleted text begin sheriff's deleted text end new text begin
mortgage foreclosure new text end 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.

(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.

Sec. 11.

Minnesota Statutes 2024, section 580.09, is amended to read:

580.09 FORECLOSURE OF INSTALLMENT; SALE; PROCEEDS;
REDEMPTION.

Where a mortgage is given to secure the payment of money by installments, each
installment, either for principal or interest, or both, as is due at any time, may be taken and
deemed to be a separate and independent mortgage, and such mortgage for each such
installment may be foreclosed by advertisement or by action, in the same manner and with
like effect as if a separate mortgage were given for each of such installments, and such
foreclosure may be made and sale had subject to the installments yet to become due upon
the mortgage; and a redemption from any such sale shall have the like effect as if the sale
for such installment had been made upon an independent subsequent mortgage; provided
in such cases the attorney's fee on the foreclosure so made shall not exceed the amount
permitted by law in case of a mortgage securing the amount of the debt then due on such
foreclosure. The proceeds of the sale shall be applied first in payment of the costs of the
foreclosure sale, and of the installment due, with interest thereon, taxes and insurance
premiums paid, if any, and then towards the payment of the residue of the sum secured by
such mortgage, and not due and payable at the time of such sale; and, if such residue does
not bear interest, such application shall be made with rebate of the legal interest for the time
during which the residue shall not be due and payable; and the surplus, if any, shall be paid
to the subsequent lienors, if any, in the order of their priority, and then to the owner of the
equity of redemption, the owner's legal representatives or assigns. In case of redemption
from any sale herein authorized, at the option of the redemptioner, the whole amount
remaining unpaid on the mortgage, with interest and other items, if any, which have become
part of the amount secured by the lien of the mortgage, may be included in the amount paid
on redemption and, in such event, the redemption so made shall have like effect as if the
foreclosure sale had been made for the entire amount secured by the mortgage, including
such additional items.

Before any sale herein authorized, the holder of the mortgage shall file with the sheriff
new text begin or private sale officer new text end a verified itemized statement in writing showing the entire amount
remaining unpaid on the mortgage, including taxes and insurance premiums paid and other
items which have become part of the amount secured, and the rate of interest to accrue on
same, which statement shall be subject to public inspection and shall be read by the sheriff
new text begin or sale officer new text end at the sale, immediately after reading the notice of sale. The certificate of
sale shall set forth correctly, in addition to the amount of sale, the remaining amount still
unpaid on and secured by the mortgage, subject to which the sale is made, and the rate of
interest to accrue on same. If, during the time to redeem from the sale, any additional or
other item, other than interest at the rate so stated in the certificate, shall attach to such
amount subject to which the sale was made, or any change shall occur in such amount or
the rate of interest thereon, the facts with respect thereto shall be set forth by affidavit, made
and recorded, and a copy furnished the sheriff new text begin or sale officer new text end , in accordance with the
provisions of section 582.03, and the provisions of that section shall apply thereto.

Sec. 12.

Minnesota Statutes 2025 Supplement, section 580.10, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Private selling officer sale. new text end

new text begin If a private selling officer conducted the sale, all
sale proceeds and surplus funds shall be paid over to the sheriff of the county in which the
property resides and handled in accordance with this section.
new text end

Sec. 13.

Minnesota Statutes 2024, section 580.11, is amended to read:

580.11 MORTGAGEE OR ASSIGNEE MAY PURCHASE.

The mortgagee, the mortgagee's assignee, or the legal representative of either or both,
may new text begin submit a maximum bid in advance and new text end fairly and in good faith purchase the premises
so advertised, or any part thereof, at such sale.

Sec. 14.

Minnesota Statutes 2024, section 580.12, is amended to read:

580.12 CERTIFICATE OF SALE; RECORD; EFFECT.

When any sale of real property is made under a power of sale contained in any mortgage,
the officer shall make and deliver to the purchaser a certificate, executed in the same manner
as a conveyance, containing:

(1) a description of the mortgage;

(2) a description of the property sold;

(3) the price paid for each parcel sold;

(4) the time and place of the sale, and the name of the purchaser;

(5) the interest rate in effect on the date of the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale; and

(6) the time allowed by law for redemption, provided that if the redemption period stated
in the certificate is five weeks and a longer redemption period was stated in the published
notice of foreclosure sale, a certified copy of the court order entered under section 582.032,
authorizing reduction of the redemption period to five weeks, must be attached to the
certificate.

A certificate which states a five-week redemption period must be recorded within ten
days after the sale; any other certificate must be recorded within 20 days after the sale.
When so recorded, upon expiration of the time for redemption, the certificate shall operate
as a conveyance to the purchaser or the purchaser's assignee of all the right, title, and interest
of the mortgagor in and to the premises named therein at the date of such mortgage, without
any other conveyance. A certificate must not contain a time allowed for redemption that is
less than the time specified by section 580.23, 582.032, or 582.32, whichever applies.

Sec. 15.

Minnesota Statutes 2024, section 580.14, is amended to read:

580.14 EXECUTION AFTER EXPIRATION OF TERM.

deleted text begin Where deleted text end new text begin If the sale is to be conducted by the sheriff or a deputy of the sheriff and new text end the term
of office of the sheriff or deputy who made the sale expires within 20 days thereafter, and
before executing the certificate required by law, that sheriff or deputy may execute and
acknowledge the same in like manner and with like effect as if the term had not expired.

Sec. 16.

Minnesota Statutes 2024, section 580.19, is amended to read:

580.19 CERTIFICATE AS EVIDENCE.

Every deleted text begin sheriff's deleted text end certificate of sale made under a power to sell contained in a mortgage
shall be prima facie evidence that all the requirements of law in that behalf have been
complied with, and prima facie evidence of title in fee thereunder in the purchaser at such
sale, the purchaser's heirs or assigns, after the time for redemption therefrom has expired.

Sec. 17.

Minnesota Statutes 2024, section 580.23, subdivision 1, is amended to read:

Subdivision 1.

Six-month redemption period.

(a) When lands have been sold in
conformity with the preceding sections of this chapter, the mortgagor, the mortgagor's
personal representatives or assigns, within six months after such sale, except as otherwise
provided in subdivision 2 or section 582.032 or 582.32, may redeem such lands, as hereinafter
provided, by paying the sum of money for which the same were sold, with interest from the
time of sale at the rate provided to be paid on the mortgage debt as stated in the certificate
of sale and, if no rate be provided in the certificate of sale, at the rate of six percent per
annum, together with any further sums which may be payable as provided in sections 582.03
and 582.031.

(b) Delivery of funds and documents for redemption must be made at the normal place
of business of the recipient, on days other than Sunday, Saturday, and legal holidays, between
the hours of 9:00 a.m. and 4:00 p.m.

(c) Regardless of the length of the redemption period, the sheriff may accept a specific
sum less than the full amount due for redemption by the mortgagor upon receipt by the
sheriff, prior to expiration of the redemption period, of written confirmation from the holder
of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end or the attorney for the holder of the deleted text begin sheriff's deleted text end certificate new text begin of
sale new text end that the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end has agreed to accept a specific sum less
than the full amount due for redemption.

Sec. 18.

Minnesota Statutes 2025 Supplement, section 580.24, is amended to read:

580.24 REDEMPTION BY CREDITOR.

(a) If no redemption is made by the mortgagor, the mortgagor's personal representatives
or assigns, the most senior creditor having a legal or equitable lien upon the mortgaged
premises, or some part of it, subsequent to the foreclosed mortgage, may redeem within 14
days after the expiration of the redemption period determined under section 580.23 or
582.032, whichever is applicable; and each subsequent creditor having a lien may redeem,
in the order of priority of their respective liens, within 14 days after the time allowed the
prior lienholder by paying the amount required under this section. However, no creditor is
entitled to redeem unless, one week or more prior to the expiration of the period allowed
for redemption by the mortgagor, the creditor:

(1) records with each county recorder and registrar of titles where the foreclosed mortgage
is recorded a notice of the creditor's intention to redeem;

(2) records with each county recorder and registrar of titles where the notice of the
creditor's intention to redeem is recorded all documents necessary to create the lien on the
mortgaged premises and to evidence the creditor's ownership of the lien, including a copy
of any money judgment necessary to create the lien; and

(3) after complying with clauses (1) and (2), delivers to the sheriff deleted text begin who conducted the
foreclosure sale or the sheriff's successor in office deleted text end new text begin of the county in which the premises was
sold at the mortgage foreclosure sale new text end a copy of each of the documents required to be recorded
under clauses (1) and (2), with the office, date and time of filing for record stated on the
first page of each document.

The sheriff shall maintain for public inspection all documents delivered to the sheriff
and shall note the date of delivery on each document. The sheriff may charge a fee of $100
for the documents delivered to the sheriff relating to each lien. The sheriff shall maintain
copies of documents delivered to the sheriff for a period of six months after the end of the
mortgagor's redemption period.

(b) Saturdays, Sundays, legal holidays, and the first day following the expiration of the
prior redemption period must be included in computing the 14-day redemption period. When
the last day of the period falls on Saturday, Sunday, or a legal holiday, that day must be
omitted from the computation. The order of redemption by judgment creditors subsequent
to the foreclosed mortgage shall be determined by the order in which their judgments were
entered as memorials on the certificate of title for the foreclosed premises or docketed in
the office of the district court administrator if the property is not registered under chapter
508 or 508A, regardless of the homestead status of the property. All mechanic's lienholders
who have coordinate liens shall have one combined 14-day period to redeem.

(c) The amount required to redeem from the holder of the deleted text begin sheriff's deleted text end certificate of sale is
the amount required under section 580.23. The amount required to redeem from a creditor
holding a certificate of redemption is:

(1) the amount paid to redeem as shown on the certificate of redemption; plus

(2) interest on that amount to the date of redemption at the rates stated on the certificate
of sale and the affidavit provided by section 580.25, clause (3), or six percent if no rate is
otherwise stated; plus

(3) the amount claimed due on the creditor's lien, as shown on the affidavit under section
580.25, clause (3).

(d) If the sheriff determines there is a dispute or question of validity about a redemption,
the sheriff may accept the amount required to redeem, together with documents in support
of the redemption, from one or more creditors competing for or claiming a right to redeem,
without executing and delivering a certificate of redemption, and the sheriff may commence
an action under section 580.28 at no cost to the sheriff. A creditor subject to a dispute or
question of validity about a redemption may submit the matter for adjudication of the court
under section 580.28. If the sheriff does not execute and deliver a certificate of redemption
under this section, all further junior creditor redemption periods are stayed until determined
by the court, and all junior creditors who have recorded notices of intent to redeem should
be included in the action under section 580.28. The amount required to redeem may be paid
to the holder of the deleted text begin sheriff's deleted text end certificate of sale or the certificate of redemption, as the case
may be, or to the sheriff for the holder.

Sec. 19.

Minnesota Statutes 2024, section 580.30, subdivision 2, is amended to read:

Subd. 2.

Request by sheriff new text begin or sale officer new text end .

Upon written request by the sheriff new text begin or sale
officer new text end , the holder of the mortgage or the holder's legal representative shall provide to the
new text begin requesting new text end sheriff new text begin or sale officer new text end within seven days of the date of the request by the sheriff
new text begin or sale officer new text end to the foreclosing attorney: (1) the current payoff amount, showing outstanding
principal, interest, and a daily interest accrual amount, (2) an itemized schedule of the current
amounts necessary to reinstate the mortgage, and (3) the identity of the person or entity
with authority to act on behalf of the holder of the mortgage or the holder's legal
representative. If the holder of the mortgage or the holder's legal representative fails to
respond to the sheriff's new text begin or sale officer's new text end request within seven days of the date of the request,
the sheriff new text begin or sale officer new text end shall postpone the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale and the
sheriff new text begin or sale officer new text end shall announce at the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale the
postponement of the sale. The postponement does not need to be published. If the request
by the sheriff new text begin or sale officer new text end is made seven days or less before the deleted text begin sheriff's deleted text end new text begin mortgage
foreclosure new text end sale, the holder of the mortgage or the holder's representative shall make a good
faith effort to respond to the sheriff new text begin or sale officer new text end before the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end
sale, but the sheriff new text begin or sale officer new text end may conduct the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale
without a response from the holder of the mortgage or the holder's legal representative.

Sec. 20.

new text begin [580.31] ONLINE SALES FOR FORECLOSURE BY ADVERTISEMENT.
new text end

new text begin (a) The private sale officer making a mortgage foreclosure sale under this chapter may
conduct the sale online in accordance with this section.
new text end

new text begin (b) The private sale officer making the mortgage foreclosure sale may engage a third-party
online sale provider to assist with performance of the online sale. Any third-party online
sale provider engaged by a private sale officer making the sale must be acquired through a
process that confirms that the provider meets the requirements in this section.
new text end

new text begin (c) For purposes of this section, "third-party online sale provider" means any sale platform
or service provider engaged by the private sale officer making the sale to assist with
conducting the sale online in accordance with state law.
new text end

new text begin (d) The private sale officer making the mortgage foreclosure sale may charge an additional
fee not to exceed $350 as a reasonable expense of the sale for costs associated with
conducting the sale online. The third-party online sale provider may not charge any additional
fee or buyer's premium for providing services in connection with the sale.
new text end

new text begin (e) If the private sale officer making the mortgage foreclosure sale elects to conduct the
sale both online and in person, all bids accepted during the sale shall be simultaneously
announced at the in-person sale and visible to the public online at the time the bids are
placed. Any maximum bid amounts provided by bidders ahead of the sale shall not be visible
to the public until the bid is placed.
new text end

new text begin (f) There shall be no fee charged to the public to view properties for sale online or to
participate in any sale in person or online.
new text end

new text begin (g) Any third-party online sale provider may collect sale funds at the time of the mortgage
foreclosure sale. The third-party provider must provide all sale funds to the private sale
officer making the sale within two business days after the conclusion of the sale.
new text end

new text begin (h) The private sale officer making the sale shall require a person seeking to bid
electronically online to complete a registration process that includes providing information
relevant to properly identify the bidder, contact the bidder, and complete the sale of the
property as determined by the private sale officer making the sale. The information must
include:
new text end

new text begin (1) if the person registering to bid online is an individual, the individual's name, email
address, and telephone number; or
new text end

new text begin (2) if the person registering to bid online is an entity, the entity's legal name, name of
an individual contact person for the entity, email address, and telephone number.
new text end

new text begin The private sale officer making the sale online shall require all bidders who wish to
participate in bidding online to have the bidder's identity verified through an identification
verification process before a bid can be placed online, including verification through a
government issued ID, biometric verification, or other method of verification as determined
by the private sale officer conducting the sale. If a bidder's identity cannot be verified through
the verification process, then the bidder may be prohibited from participating in the online
sale.
new text end

new text begin (i) The purchaser at an online mortgage foreclosure sale shall submit to the private sale
officer conducting the sale the information required by this paragraph and pay the full
balance. The purchaser shall provide all required information to be checked against the
federal Office for Foreign Assets Control sanction list by the private sale officer conducting
the sale prior to finalizing the purchase of the property. The private sale officer conducting
the sale shall check the winning purchaser against the sanction list before the certificate of
sale is provided, including the individual's name, physical mailing address, email address,
and any other information requested by the person conducting the sale in order to adequately
identify and contact the purchaser or entity's legal name, trade name if different from legal
name, state and date of formation, mailing address, proof of business registration with the
state of Minnesota, the name of an individual contact person for the entity, and email address
and telephone number for that individual. The private sale officer making the sale may
require a sale deposit prior to allowing any bidder to participate in the online mortgage
foreclosure sale. The purchaser must pay the full winning bid amount due for the purchase
to the private sale officer making the sale within 24 hours after the end of the sale, unless
otherwise set forth by the private sale officer making the sale, in the form designated by the
private sale officer making the sale. If the purchaser fails to provide the required information
or purchase funds within the time period designated in this section, the purchaser is in default
and the private sale officer making the sale may deem the sale incomplete and proceed with
postponing and rescheduling the sale in accordance with section 580.07, and the sale deposit,
if any, shall be forfeited by the purchaser and applied to the costs of the foreclosure.
new text end

new text begin (j) Any private sale officer conducting a sale online must maintain evidence of satisfactory
internal informational security controls that meet industry standards and are maintained by
the platform used to conduct online sales. Such evidence of satisfactory internal controls
regarding data security may be in the form of an annual Systems and Organization Controls
2 Report certification, with the ability to test and report on the design effectiveness and
operating effectiveness of the platform's controls, or another form ensuring performance
and security requirements are met.
new text end

new text begin (k) The private sale officer conducting the mortgage foreclosure sale and any third-party
online sale provider may engage in activities to promote and market the sale to encourage
and facilitate bidding, including listing the property on real estate websites and conducting
email campaigns. The private sale officer conducting the sale or the third-party online sale
provider is solely responsible for paying all fees or expenses incurred in connection with
such activities.
new text end

new text begin (l) For mortgage foreclosure sales occurring only online, the sale must be open for
bidding for a minimum of 24 hours and bidding shall be open to all interested parties for
the entire duration of the bidding period.
new text end

Sec. 21.

Minnesota Statutes 2025 Supplement, section 582.03, subdivision 1, is amended
to read:

Subdivision 1.

Allowable costs collectable upon redemption.

The holder of any deleted text begin sheriff's deleted text end
certificate of sale, from a foreclosure by advertisement or action of a mortgage or lien or
execution, or the holder of any certificate of redemption as a junior creditor during the
period of redemption, may pay and claim the following on redemption: any taxes or
assessments on which any penalty would otherwise accrue, and any costs of a hazard
insurance policy for the holder's interest in the mortgaged premises incurred for the period
of holding the deleted text begin sheriff's deleted text end certificate, any costs incurred when an order to reduce a mortgagor's
redemption period under section 582.032 is entered, including costs and disbursements
awarded under section 582.032, subdivision 9, any fees paid to the county recorder, registrar
of titles, deleted text begin or deleted text end sheriff new text begin , or private sale officer new text end to obtain or record the certificates of sale or
redemption or notices of intention to redeem, any reasonable fees paid to licensed real estate
brokers for broker price opinions or to licensed appraisers for appraisals, any deed tax paid
to file a certificate of redemption, reasonable attorney fees incurred after the foreclosure
sale not to exceed one-half of the amount authorized by section 582.01, any costs incurred
under section 582.031 new text begin or 580.31 new text end , and any interest or installment of principal upon any prior
or superior mortgage, lien, or contract for deed in default or that becomes due during the
period of redemption. In all such cases, the costs so paid and claimed due, with interest
from the date of payment at the rate stated in the certificate of sale or at six percent if no
rate is stated, shall be a part of the sum required to be paid to redeem from such sale. No
other costs, fees, interest, or other amount may be added to the amount necessary to redeem.

Sec. 22.

Minnesota Statutes 2025 Supplement, section 582.03, subdivision 2, is amended
to read:

Subd. 2.

Affidavit of allowable costs.

Any payments made and claimed due under
subdivision 1 shall be proved by the affidavit of the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end
or its agent or attorney, itemizing each of the allowable costs and the date of payment and
describing the premises. The affidavit must be filed with the sheriff of the county in which
the sale was held at any time prior to expiration of the mortgagor's redemption period. Upon
written request by the sheriff, the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end or certificate of
redemption shall provide an affidavit of allowable costs to the sheriff within seven days of
the date of the request by the sheriff. If the mortgagor does not redeem within seven days
after the affidavit is filed, the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end may file a supplemental
affidavit if additional allowable costs are incurred during the redemption period. If the
holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end or certificate of redemption fails to respond to the
sheriff's request within seven days, the sheriff may calculate a redemption amount pursuant
to section 580.23, subdivision 1, and issue a certificate of redemption for that amount. If
the time allowed to redeem is less than seven days from the expiration of the redemption
period, the sheriff shall make a reasonable effort to request the affidavit of allowable costs
in writing from the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end , its agent, or attorney before
issuing a certificate of redemption. If the affidavit of allowable costs is not provided more
than one business day before the expiration of the redemption period, at any time one
business day or less before the expiration of the redemption period, the sheriff may calculate
a redemption amount pursuant to section 580.23, subdivision 1, and issue a certificate of
redemption for that amount. The amount calculated by the sheriff, absent malfeasance by
the sheriff, binds the holder of the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end even if the amount calculated
by the sheriff is less than the actual amount due.

Sec. 23.

Minnesota Statutes 2024, section 582.031, is amended to read:

582.031 LIMITED RIGHT OF ENTRY; DUTY TO ENTER AND PROTECT
PREMISES.

Subdivision 1.

Right of entry.

(a) If premises described in a mortgage or deleted text begin sheriff's deleted text end
certificate new text begin of sale new text end are vacant or unoccupied, the holder of the mortgage or deleted text begin sheriff's deleted text end certificate new text begin
of sale new text end or the holder's agents and contractors may enter upon the premises to protect the
premises from waste and trespass, until the holder of the mortgage or deleted text begin sheriff's deleted text end certificate new text begin of
sale new text end receives notice that the premises are occupied. The holder of the mortgage or deleted text begin sheriff's deleted text end
certificate new text begin of sale new text end does not become a mortgagee in possession by taking actions authorized
or required under this section. An affidavit of the sheriff, the building or housing regulatory
authority of a municipality in which the property is located, the holder of the mortgage or
deleted text begin sheriff's deleted text end certificate new text begin of sale new text end , or a person acting on behalf of the holder, describing the premises
and stating that the same are vacant or unoccupied, is prima facie evidence of the facts stated
in the affidavit and is entitled to be recorded in the office of the county recorder or the
registrar of titles in the county where the premises are located, if it contains a legal description
of the premises.

(b) If the holder of a deleted text begin sheriff's deleted text end certificate new text begin of sale new text end knows that there is prima facie evidence
of abandonment of the property, as described in section 582.032, subdivision 7, clauses (1)
to (6), the holder or the holder's agents:

(1) shall enter the premises and make reasonable periodic inspections, install or change
the locks on all doors, install locks on all windows that do not have locks, and ensure that
any existing window locks are functioning properly; and

(2) may, to protect the premises from waste, trespass, or falling below minimum
community standards for public safety and sanitation, enter the premises and board windows,
doors, and other openings; install and operate an alarm system; and otherwise prevent or
minimize damage to the premises from the elements, vandalism, trespass, or other illegal
activity.

(c) Upon an installation or change of locks as required by this section, the holder of a
deleted text begin sheriff's deleted text end certificate new text begin of sale new text end must deliver a key to the premises to the mortgagor or any person
lawfully claiming through the mortgagor, upon request.

Subd. 2.

Authorized actions.

The holder of the mortgage or deleted text begin sheriff's deleted text end certificate new text begin of sale new text end
may take the following actions to protect the premises from waste, trespass, or from falling
below minimum community standards for public safety and sanitation: make reasonable
periodic inspections; install or change locks on doors and windows; board windows, doors,
and other openings; install and operate an alarm system; and otherwise prevent or minimize
damage to the premises from the elements, vandalism, trespass, or other illegal activities.
If the holder of the mortgage or deleted text begin sheriff's deleted text end certificate new text begin of sale new text end installs or changes locks under
this section, a key to the premises must be promptly delivered to the mortgagor or any person
lawfully claiming through the mortgagor, upon request.

Subd. 3.

Costs.

All costs incurred by the holder of the mortgage or deleted text begin sheriff's deleted text end certificate new text begin
of sale new text end to protect the premises from waste or trespass or from falling below minimum
community standards for public safety and sanitation may be added to the principal balance
of the mortgage or the costs allowable upon redemption. The costs may bear interest to the
extent provided in the mortgage and may be added to the redemption price if the costs are
incurred after a foreclosure sale. If the costs are incurred after a foreclosure sale, the holder
of any deleted text begin sheriff's deleted text end certificate of sale or certificate of redemption must comply with the provisions
of section 582.03. The provisions of this section are in addition to, and do not limit or
replace, any other rights or remedies available to holders of mortgages and deleted text begin sheriff's deleted text end
certificates new text begin of sale new text end , at law or under the applicable mortgage agreements.

Sec. 24.

Minnesota Statutes 2024, section 582.032, subdivision 4, is amended to read:

Subd. 4.

Summons and complaint.

In a foreclosure by advertisement, the party
foreclosing a mortgage or holding the deleted text begin sheriff's deleted text end certificate of sale or the political subdivision
in which the mortgaged premises are located may initiate a proceeding in district court to
reduce the mortgagor's redemption period under this section. The proceeding must be
initiated by the filing of a complaint, naming the mortgagor, or the mortgagor's personal
representatives or assigns of record, as defendant, in district court for the county in which
the mortgaged premises are located. If the proceeding is initiated by a political subdivision,
the party foreclosing the mortgage or holding the deleted text begin sheriff's deleted text end certificate of sale must also be
named as a defendant, and the summons and complaint shall be delivered by certified mail
to the foreclosing attorney. If the proceeding is commenced after the foreclosure sale, the
holders of junior liens and interests entitled to notice under subdivision 3 must also be named
as defendants. The complaint must identify the mortgaged premises by legal description
and must identify the mortgage by the names of the mortgagor and mortgagee, and any
assignee of the mortgagee; the date of its making; and pertinent recording information. The
complaint must allege that the mortgaged premises are:

(1) ten acres or less in size;

(2) improved with a residential dwelling consisting of less than five units, which is not
a model home or a dwelling under construction;

(3) not property used in agricultural production; and

(4) abandoned.

The complaint must request an order reducing the mortgagor's redemption period to five
weeks. When the complaint has been filed, the court shall issue a summons commanding
the person or persons named in the complaint to appear before the court on a day and at a
place stated in the summons. The appearance date shall be not less than 15 nor more than
25 days from the date of the issuing of the summons. A copy of the filed complaint must
be attached to the summons.

Sec. 25.

Minnesota Statutes 2024, section 582.032, subdivision 5, is amended to read:

Subd. 5.

Order to show cause.

In a foreclosure by action, the plaintiff or the holder of
the deleted text begin sheriff's deleted text end certificate new text begin of sale new text end may make a motion to reduce the mortgagor's redemption
period under this section. The political subdivision in which the mortgaged premises are
located may intervene in the action and make a motion to reduce the redemption period.
The motion must conform generally to the pleading requirements provided in subdivision
4. For purposes of the motion, the court has continuing jurisdiction over the parties and the
mortgaged premises through the expiration of the redemption period. When the motion has
been filed, the court shall issue an order to show cause commanding the parties it considers
appropriate to appear before the court on a day and at a place stated in the order. The
appearance date may not be less than 15 nor more than 25 days after the date of the order
to show cause. A copy of the motion must be attached to the order to show cause.

Sec. 26.

Minnesota Statutes 2024, section 582.032, subdivision 7, is amended to read:

Subd. 7.

Hearing; evidence; order.

At the hearing on the summons and complaint or
order to show cause, the court shall enter an order reducing the mortgagor's redemption
period as provided in subdivision 2 or 3, as applicable, if evidence is presented supporting
the allegations in the complaint or motion and no appearance is made to oppose the relief
sought. An affidavit by the sheriff or a deputy sheriff of the county in which the mortgaged
premises are located, or of a building inspector, zoning administrator, housing official, or
other municipal or county official having jurisdiction over the mortgaged premises, stating
that the mortgaged premises are not actually occupied and further setting forth any of the
following supporting facts, is prima facie evidence of abandonment:

(1) windows or entrances to the premises are boarded up or closed off, or multiple
window panes are broken and unrepaired;

(2) doors to the premises are smashed through, broken off, unhinged, or continuously
unlocked;

(3) gas, electric, or water service to the premises has been terminated;

(4) rubbish, trash, or debris has accumulated on the mortgaged premises;

(5) the police or sheriff's office has received at least two reports of trespassers on the
premises, or of vandalism or other illegal acts being committed on the premises; or

(6) the premises are deteriorating and are either below or are in imminent danger of
falling below minimum community standards for public safety and sanitation.

An affidavit of the party foreclosing the mortgage or holding the deleted text begin sheriff's deleted text end certificate new text begin of
sale new text end , or one of their agents or contractors, stating any of the above supporting facts, and that
the affiant has changed locks on the mortgaged premises under section 582.031 and that
for a period of ten days no party having a legal possessory right has requested entrance to
the premises, is also prima facie evidence of abandonment. Either affidavit described above,
or an affidavit from any other person having knowledge, may state facts supporting any
other allegations in the complaint or motion and is prima facie evidence of the same. Written
statements of the mortgagor, the mortgagor's personal representatives or assigns, including
documents of conveyance, which indicate a clear intent to abandon the premises, are
conclusive evidence of abandonment. In the absence of affidavits or written statements, or
if rebuttal evidence is offered by the defendant or a party lawfully claiming through the
defendant, the court may consider any competent evidence, including oral testimony,
concerning any allegation in the complaint or motion. A defendant's failure to appear at the
hearing after service of process in compliance with subdivision 6 is conclusive evidence of
abandonment by the defendant, subject to vacation under Rule 60.02 of the Minnesota Rules
of Civil Procedure. An order entered under this section must contain a legal description of
the mortgaged premises.

Sec. 27.

Minnesota Statutes 2024, section 582.032, subdivision 9, is amended to read:

Subd. 9.

Costs.

Upon motion of a political subdivision that initiated a proceeding under
subdivision 4 or intervened under subdivision 5, if an order is entered to reduce the
redemption period to five weeks, the court shall award costs and disbursements to the
political subdivision. The party foreclosing the mortgage or holding the deleted text begin sheriff's deleted text end certificate
of sale is liable for an award under this subdivision but may recover these amounts upon
reinstatement or redemption as provided in section 580.30, subdivision 1, or 582.03,
subdivision 1.

Sec. 28.

Minnesota Statutes 2024, section 582.041, subdivision 2, is amended to read:

Subd. 2.

Homestead designation notice.

(a) The following notice must be served with
the foreclosure notice of property containing a homestead that is served on the person in
possession of the real property under section 580.03. The notice is not to be published. The
notice must be in 10-point capitalized letters.

"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU
MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.

YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT
SO THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE
REMAINING PROPERTY.

YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY, THE
SHERIFF, new text begin THE PRIVATE SELLING OFFICER (IF APPOINTED), new text end AND THE COUNTY
RECORDER WITH A COPY OF THE LEGAL DESCRIPTION OF THE HOMESTEAD
YOU HAVE DESIGNATED BY TEN BUSINESS DAYS BEFORE THE DATE THE
PROPERTY IS TO BE SOLD."

(b) The following notice must be served with the summons and complaint in an action
to foreclose a mortgage of property containing a homestead under chapter 581. The notice
must be in 10-point capitalized letters and is not to be published with the summons if the
summons is published.

"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU
MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.

YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF
THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY
MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT
SO THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE
REMAINING PROPERTY.

YOU MUST PROVIDE THE COURT WITH A LEGAL DESCRIPTION OF THE
HOMESTEAD YOU HAVE DESIGNATED."

Sec. 29.

Minnesota Statutes 2024, section 582.042, subdivision 3, is amended to read:

Subd. 3.

Designation of separate tracts.

The person being foreclosed must designate
by legal description each of the tracts to be sold separately. The tracts designated must be
previously recorded as separate tracts. Each of the separate tracts must conform to local
zoning ordinances, must have an entrance by direct access to a public road or by permanent
easement, and must not unreasonably affect the value of the remaining property. The person
being foreclosed must serve a copy of the legal descriptions of the tracts to be sold separately
on the foreclosing mortgagee deleted text begin , deleted text end new text begin ; new text end the sheriff deleted text begin , deleted text end new text begin ; the private selling officer, if appointed; new text end and the
county recorder or registrar of titles by ten business days before the sale is scheduled, or
for a foreclosure by action under chapter 581, a copy of the legal descriptions of the tracts
to be sold separately must be provided to the court.

Sec. 30.

Minnesota Statutes 2024, section 582.042, subdivision 4, is amended to read:

Subd. 4.

Sale of property.

If the sheriff new text begin or private selling officer new text end receives a designation
of separate tracts under subdivision 3, or is ordered by the court, the sheriff new text begin or private selling
officer new text end must offer and sell the tracts separately.

Sec. 31.

Minnesota Statutes 2024, section 582.25, is amended to read:

582.25 MORTGAGES; VALIDATING FORECLOSURE SALES.

Every mortgage foreclosure sale by advertisement in this state under power of sale
contained in any mortgage duly executed and recorded in the office of the county recorder
or registered with the registrar of titles of the proper county of this state, together with the
record of such foreclosure sale, is, after expiration of the period specified in section 582.27,
hereby legalized and made valid and effective to all intents and purposes, as against any or
all of the following objections:

(1) that the power of attorney, recorded or filed in the proper office provided for by
section 580.05:

(i) did not definitely describe and identify the mortgage;

(ii) did not definitely describe and identify the mortgage, but instead described another
mortgage between the same parties;

(iii) did not have the corporate seal affixed thereto, if executed by a corporation;

(iv) had not been executed and recorded or filed prior to sale, or had been executed prior
to, but not recorded or filed until after such sale;

(v) was executed subsequent to the date of the printed notice of sale or subsequent to
the date of the first publication of such notice;

(2) that no power of attorney to foreclose such mortgage as provided in section 580.05,
was ever given, or recorded, or registered;

(3) that the notice of sale:

(i) was published only three, four or five times, or that it was published six times but
not for six weeks prior to the date of sale;

(ii) properly described the property to be sold in one or more of the publications thereof
but failed to do so in the other publications thereof, the correct description having been
contained in the copy of said notice served on the occupant of the premises;

(iii) correctly stated the date of the month and hour and place of sale but named a day
of the week which did not fall on the date given for such sale, or failed to state or state
correctly the year of such sale;

(iv) correctly described the real estate but omitted the county and state in which said
real estate is located;

(v) correctly described the land by government subdivision, township and range, but
described it as being in a county other than that in which said mortgage foreclosure
proceedings were pending, and other than that in which said government subdivision was
actually located;

(vi) did not state the amount due or failed to state the correct amount due or claimed to
be due;

(vii) incorrectly stated the municipal status of the place where the sale was to occur;

(viii) in one or more of the publications thereof, or in the notice served on the occupant
or occupants designated either a place or a time of sale other than that stated in the certificate
of sale;

(ix) failed to state the names of one or more of the assignees of the mortgage and
described the subscriber thereof as mortgagee instead of assignee;

(x) failed to state or incorrectly stated the name of the mortgagor, the mortgagee, or
assignee of mortgagee;

(xi) was not served upon persons whose possession of the mortgaged premises was
otherwise than by their personal presence thereon, if a return or affidavit was recorded or
filed as a part of the foreclosure record that at a date at least four weeks prior to the sale the
mortgaged premises were vacant and unoccupied;

(xii) was not served upon all of the parties in possession of the mortgaged premises,
provided it was served upon one or more of such parties;

(xiii) was not served upon the persons in possession of the mortgaged premises, if, at
least two weeks before the sale was actually made, a copy of the notice was served upon
the owner in the manner provided by law for service upon the occupants, or the owner
received actual notice of the proposed sale;

(xiv) gave the correct description at length, and an incorrect description by abbreviation
or figures set off by the parentheses, or vice versa;

(xv) was served personally upon the occupants of the premises as such, but said service
was less than four weeks prior to the appointed time of sale;

(xvi) did not state the original principal amount secured, or failed to state the correct
original principal amount secured;

(4) that distinct and separate parcels of land were sold together as one parcel and to one
bidder for one bid for the whole as one parcel;

(5) that no authenticated copy of the order appointing, or letters issued to a foreign
representative of the estate of the mortgagee or assignee, was properly filed or recorded,
provided such order or letters have been filed or recorded in the proper office prior to one
year after the last day of the redemption period of the mortgagor, the mortgagor's personal
representatives or assigns;

(6) that a holder of a mortgage was a representative appointed by a court of competent
jurisdiction in another state or county in which before the foreclosure sale an authenticated
copy of the representative's letters or other record of authority were filed for record in the
office of the county recorder of the proper county but no certificate was filed and recorded
therewith showing that said letters or other record of authority were still in force;

(7)(i) that said mortgage was assigned by a decree of a court exercising probate
jurisdiction in which decree the mortgage was not specifically or sufficiently described;

(ii) that the mortgage foreclosed had been assigned by the final decree of the court
exercising probate jurisdiction to the heirs, devisees, or legatees of the deceased mortgagee,
or the mortgagee's assigns, and subsequent thereto and before the representative of the estate
had been discharged by order of the court, the representative had assigned the mortgage to
one of the heirs, devisees, or legatees named in such final decree, and such assignment
placed on record and the foreclosure proceedings conducted in the name of such assignee
and without any assignment of the mortgage from the heirs, devisees, or legatees named in
such final decree, and the mortgaged premises bid in at the sale by such assignee, and the
deleted text begin sheriff's deleted text end certificate of sale, with accompanying affidavits recorded in the office of the county
recorder of the proper county;

(iii) that a mortgage owned by joint tenants or tenants in common was foreclosed by
only one tenant;

(8) that the deleted text begin sheriff's deleted text end certificate of sale or the accompanying affidavits and return of
service were not executed, filed or recorded within 20 days after the date of sale, but have
been executed and filed or recorded prior to the last day of the redemption period of the
mortgagor, the mortgagor's personal representatives or assigns;

(9) that the year, or the month, or the day, or the hour of the sale is omitted or incorrectly
or insufficiently stated in the notice of sale or the deleted text begin sheriff's deleted text end certificate of sale;

(10)(i) that prior to the foreclosure no registration tax was paid on the mortgage, provided
such tax had been paid prior to one year after the last day of the redemption period of the
mortgagor, the mortgagor's personal representatives or assigns;

(ii) that an insufficient registration tax has been paid on the mortgage;

(11) that the date of the mortgage or any assignment thereof or the date, the month, the
day, hour, book, and page, or document number of the record or filing of the mortgage or
any assignment thereof, in the office of the county recorder or registrar of titles is omitted
or incorrectly or insufficiently stated in the notice of sale or in any of the foreclosure papers,
affidavits or instruments;

(12) that the notice of mortgage foreclosure sale or deleted text begin sheriff's deleted text end certificate of sale designated
the place of sale as the office of a county official located in the court house of the county
when such office was not located in such court house;

(13) that no notice of the pendency of the proceedings to enforce or foreclose the
mortgage as provided in section 508.57, was filed with the registrar of titles or no memorial
thereof was entered on the register at the time of or prior to the commencement of such
proceedings; or that when required by section 508.57, the notice of mortgage foreclosure
sale failed to state the fact of registration;

(14) that the power of attorney to foreclose or the notice of sale was signed by the person
who was the representative of an estate, but failed to state or correctly state the person's
representative capacity;

(15) that the complete description of the property foreclosed was not set forth in the
deleted text begin sheriff's deleted text end certificate of sale, if said certificate correctly refers to the mortgage by book and
page numbers or document number and date of filing and the premises are accurately
described in the printed notice of sale annexed to said foreclosure sale record containing
said deleted text begin sheriff's deleted text end certificate of sale;

(16) that the date of recording of the mortgage was improperly stated in the deleted text begin sheriff's deleted text end
certificate of mortgage foreclosure sale, the mortgage being otherwise properly described
in said deleted text begin sheriff's deleted text end certificate of mortgage foreclosure sale and said certificate of mortgage
foreclosure sale further referring to the printed notice of mortgage foreclosure sale attached
to said deleted text begin sheriff's deleted text end certificate of mortgage foreclosure sale in which printed notice the mortgage
and its recording was properly described;

(17) that prior to the first publication of the notice of sale in foreclosure of a mortgage
by advertisement, an action or proceeding had been instituted for the foreclosure of said
mortgage or the recovery of the debt secured thereby and such action or proceeding had not
been discontinued;

(18) that at the time and place of sale the sheriff new text begin or private sale officer new text end considered and
accepted a bid submitted prior to the date of the sale by the owner of the mortgage and sold
the mortgaged premises for the amount of such bid, no other bid having been submitted,
and no one representing the owner of the mortgage being present at the time and place of
sale;

(19) that such sale was postponed by the sheriff new text begin or private sale officer new text end to a date or time
subsequent to the one specified in the notice of sale but there was no publication or posting
of a notice of such postponement;

(20) that there was not recorded with letters or other record of authority issued to a
representative appointed by a court of competent jurisdiction in another state or county, a
certificate that said letters or other record of authority were still in force and effect;

(21) that the sheriff's new text begin or private sale officer's new text end affidavit of sale correctly stated in words
the sum for which said premises were bid in and purchased by the mortgagee, but incorrectly
stated the same in figures immediately following the correct amount in words;

(22) that the notice of pendency of the foreclosure as required by section 580.032 was
not filed for record before the first date of publication of the foreclosure notice, but was
filed before the date of sale;

(23) that the servicer did not comply with the requirements of section 582.043;

(24) that notice for any postponement of the deleted text begin sheriff's deleted text end new text begin mortgage foreclosure new text end sale by the
party conducting the foreclosure was not timely or properly mailed or published; and

(25) that the publication of the notice of sale did not comply with section 580.033.

Sec. 32. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 31 are effective August 1, 2026, and apply to foreclosures with a notice
of pendency under Minnesota Statutes, chapter 580, or a lis pendens for a foreclosure under
Minnesota Statutes, chapter 581, recorded on or after that date.
new text end