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HF 2820

as introduced - 87th Legislature (2011 - 2012) Posted on 03/20/2012 09:54am

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4
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A bill for an act
relating to real estate; foreclosure forbearance for unemployed long-term
homeowners; proposing coding for new law in Minnesota Statutes, chapter 580.

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

Section 1.

new text begin [580.0211] FORECLOSURE FORBEARANCE FOR FINANCIAL
HARDSHIP OF UNEMPLOYED LONG-TERM HOMEOWNERS.
new text end

new text begin (a) Upon request and proof of eligibility provided by the mortgagor, a mortgagee
shall defer commencement or continuation of a mortgage foreclosure for at least 12
months for mortgagors: (1) who have lived in their current home that is subject to the
mortgage for at least ten years; and (2) at least one of whom is unemployed and eligible
for unemployment compensation or whose eligibility for it has expired.
new text end

new text begin (b) Mortgagors who qualify under paragraph (a) and have lived in their current home
that is subject to the mortgage for at least 20 years may request, and the mortgagee must
provide, a deferral of commencement or continuation of foreclosure of at least 24 months.
new text end

new text begin (c) A mortgagor may request and receive a deferral under paragraph (a) or (b) at
any time before or during a foreclosure.
new text end

new text begin (d) Interest may continue to accrue on the loan, unless otherwise agreed between
the parties.
new text end

new text begin (e) The mortgagee must notify in writing, as part of the notice of default, any
potentially eligible mortgagor of the mortgagor's rights under this section.
new text end