HF 19

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:33am

A bill for an act
relating to real property; mortgages; providing for postponement of sale;
amending Minnesota Statutes 2008, section 580.07.

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

Section 1.

Minnesota Statutes 2008, section 580.07, is amended to read:

580.07 POSTPONEMENT.

new text begin Subdivision 1. new text end

new text begin Postponement by mortgagee. new text end

The sale may be postponed, from
time to time, by the party conducting the foreclosure, by inserting a notice of the
postponement, as soon as practicable, in the newspaper in which the original advertisement
was published, at the expense of the party requesting the postponement. The notice shall
be published only once.

new text begin Subd. 2. new text end

new text begin Postponement by mortgagor or owner. new text end

new text begin (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 postpone the sale to the first date that is not
a Saturday, Sunday, or legal holiday and is five months after the originally scheduled
date of sale in the manner provided in this subdivision. 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 published or served notice of mortgage foreclosure sale under
sections 580.03 and 580.04, 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.
new text end

new text begin (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.
new text end

new text begin Subd. 3. new text end

new text begin Affidavit form. new text end

new text begin The affidavit referred to in subdivision 2 shall be in
substantially the following form and shall contain all of the following information.
new text end

new text begin STATE OF ______________
new text end

new text begin COUNTY OF ______________
new text end

new text begin ________________________________________ (whether one or more, "Owner"),
being first duly sworn on oath, states as follows:
new text end

new text begin 1. (He is) (She is) (They are) the owner(s) or mortgagor(s) of the real property (the
"Property") situated in __________ (Name of) County, Minnesota, legally described in the
attached published Notice of Mortgage Foreclosure Sale (the "Notice"), and make this
affidavit for the purpose of postponing the foreclosure sale of the Property pursuant to
Minnesota Statutes, section 580.07, subdivision 2, for five months from the date scheduled
in the attached Notice.
new text end

new text begin 2. The Property is classified as homestead under Minnesota Statutes, section
273.124, is occupied by Owner as a homestead, and is improved with not more than
four dwelling units.
new text end

new text begin 3. Owner has elected to shorten Owner's redemption period from any foreclosure
sale of the Property to five weeks in exchange for the postponement of the foreclosure
sale for five months.
new text end

new text begin ___________________________________________ (signature(s) of owner)
new text end

new text begin Signed and sworn to (or affirmed) before me on .......... (date) by ................ (name(s)
of person(s) making statement).
new text end

new text begin ___________________________________________ (signature of notary public)
new text end

new text begin Notary Public
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective one month after the date of final
enactment, and applies to foreclosure sales scheduled to occur on or after said effective
date.
new text end