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HF 2824

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 02:42pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to real property; modifying time for requesting a hearing on an order to
secure a building; modifying notice of sale requirements; requiring a certificate
of sale and specified information to be provided to political subdivisions;
authorizing political subdivisions to recover costs and attorney fees associated
with obtaining a five-week redemption period; amending Minnesota Statutes
2008, sections 580.03; 580.12; 580.30, subdivision 1; 582.03, subdivision 1;
582.032, by adding a subdivision; Minnesota Statutes 2009 Supplement, sections
463.251, subdivision 3; 580.04.


Section 1.

Minnesota Statutes 2009 Supplement, section 463.251, subdivision 3,
is amended to read:

Subd. 3.

Securing building by city; lien.

If the owner of the building or a holder of
the sheriff's certificate of sale fails to either comply or provide to the governing body a
reasonable plan and schedule to comply with an order issued under subdivision 2 or to
request a hearing on the order within deleted text begin14deleted text end new text beginsix new text enddays after the order is served, the governing
body shall cause the building to be properly secured and the cost of securing the building
may be charged against the real estate as provided in section 463.21. In the metropolitan
area, as defined in section 473.121, subdivision 2, the governing body may work with
neighborhood associations to develop and implement plans to secure vacant buildings in
a timely and cost-effective fashion. The city may use rehabilitation and revitalization
funds in implementing this section.

Sec. 2.

Minnesota Statutes 2008, section 580.03, is amended to read:

new text end.

Six weeks' published notice shall be given that such mortgage will be foreclosed by
sale of the mortgaged premises or some part thereof, and at least four weeks before the
appointed time of sale a copy of such notice shall be served in like manner as a summons
in a civil action in the district court upon the person in possession of the mortgaged
premises, if the same are actually occupiednew text begin, and must be mailed or delivered to the city
or town in which the premises is located
new text end. If there be a building on such premises used
by a church or religious corporation, for its usual meetings, service upon any officer
or trustee of such corporation shall be a sufficient service upon it. The notice required
by sections 580.041 and 580.042 must be served simultaneously with the notice of
foreclosure required by this section.

Sec. 3.

Minnesota Statutes 2009 Supplement, section 580.04, is amended to read:


(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

(5) the time and place of sale;

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's
personal representatives or assigns; deleted text beginand
deleted text end

(7) new text beginthe name, address, and telephone number of a current representative of the
mortgagee or an assignee of the mortgage who has the authority to negotiate a resolution
of the foreclosure and respond to property maintenance concerns of the city or town in
which the premises is located; and
new text end

new text begin (8) new text endfor mortgaged premises described in section 582.032, subdivision 1, the following
statement in capital letters: "THE TIME ALLOWED BY LAW FOR REDEMPTION

(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 2008, section 580.12, is amended to read:


new text begin Subdivision 1. new text end

new text begin Delivery to purchaser; effect. new text end

new text begin(a) new text endWhen 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 sheriff's 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.

new text begin (b) new text endA 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.

new text begin Subd. 2. new text end

new text begin Delivery to political subdivision. new text end

new text begin Within five days of receipt of the
certificate of sale under subdivision 1, the purchaser shall mail or deliver a copy of the
certificate of sale to the city or town in which the mortgaged premises is located, along
with the commonly used street address of the premises and the name and address of the
property taxpayer for the premises.
new text end

Sec. 5.

Minnesota Statutes 2008, section 580.30, subdivision 1, is amended to read:

Subdivision 1.


In any proceedings for the foreclosure of a real estate
mortgage, whether by action or by advertisement, if at any time before the sale of the
premises under such foreclosure the mortgagor, the owner, or any holder of any subsequent
encumbrance or lien, or any one for them, shall pay or cause to be paid to the holder of the
mortgage so being foreclosed, or to the attorney foreclosing the same, or to the sheriff of
the county, the amount actually due thereon and constituting the default actually existing
in the conditions of the mortgage at the time of the commencement of the foreclosure
proceedings, including insurance, delinquent taxes, if any, upon the premises, interest to
date of payment, cost of publication and services of process or notices, attorney's fees not
exceeding $150 or one-half of the attorney's fees authorized by section 582.01, whichever
is greater, new text beginany costs incurred when an order to reduce a mortgagor's redemption period
under section 582.032 is entered, including amounts awarded under section 582.032,
subdivision 9,
new text endtogether with other lawful disbursements necessarily incurred in connection
with the proceedings by the party foreclosing, then, and in that event, the mortgage shall be
fully reinstated and further proceedings in such foreclosure shall be thereupon abandoned.

Sec. 6.

Minnesota Statutes 2008, section 582.03, subdivision 1, is amended to read:

Subdivision 1.

Allowable costs collectable upon redemption.

The holder of any
sheriff's 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 sheriff's certificate, any costs incurred when an order to reduce
a mortgagor's redemption period under section 582.032 is entered, new text beginincluding amounts
awarded under section 582.032, subdivision 9,
new text endany fees paid to the county recorder,
registrar of titles, or sheriff 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, 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, 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. 7.

Minnesota Statutes 2008, section 582.032, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Costs. new text end

new text begin 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, disbursements, and
reasonable attorney fees to the political subdivision. The party foreclosing the mortgage or
holding the sheriff's 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.
new text end