HF 3475

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to mortgages; amending various provisions relating to foreclosure;
amending Minnesota Statutes 2006, sections 507.092, subdivision 1; 580.02;
580.03; 580.041, subdivisions 1b, 2; 580.06; 580.07; 580.12; 580.23, subdivision
1; 580.25; 580.28; 580.30; 581.10; 582.03; 582.031; Minnesota Statutes 2007
Supplement, sections 510.05; 550.19; 550.22; 550.24; 580.24; Laws 2004,
chapter 263, section 26; 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 2006, section 507.092, subdivision 1, is amended to read:

Subdivision 1.

To get tax statements.

new text begin (a) new text end No contract for deed or deed conveying
fee title to real estate shall be recorded by the county recorder or registered by the registrar
of titles until the name and address of the grantee, to whom future tax statements should be
sent, is printed, typewritten, stamped or written on it in a legible manner. An instrument
complies with this subdivision if it contains a statement in the following form: "Tax
statements for the real property described in this instrument should be sent to:

............... ( new text begin legal new text end name new text begin of grantee new text end ) ............... ( new text begin residential or business new text end address)."

new text begin (b) The name provided under paragraph (a) must be the legal name of the grantee
and the address must be the residential or business address of the grantee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to a contract for deed or deed conveying
fee title to real estate executed on or after August 1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 510.05, is amended to read:

510.05 LIMITATIONS.

The amount of the homestead exemption shall not be reduced by and shall not extend
to any mortgage lawfully obtained thereon, to any valid lien for taxes or assessments, to a
claim filed pursuant to section 246.53 or 256B.15, to any charge arising under the laws
relating to laborers or material suppliers' liens or to any charge obtained new text begin under section
481.13 new text end pursuant to a valid waiver of the homestead exemption.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 550.19, is amended to read:

550.19 SERVICE ON JUDGMENT DEBTOR.

new text begin If the sale is of personal property, at or before the time of posting notice of sale, the
officer shall serve a copy of the execution and inventory, and of the notice, upon the
judgment debtor, if the debtor is a resident of the county, in the manner required by law
for the service of a summons in a civil action. If the sale is of real property, new text end a judgment
creditor must, at least four weeks before the appointed time of sale, serve a copy of the
notice of sale in like manner as a summons in a civil action in the district court upon the
judgment debtor if the judgment debtor is a resident of the county and upon any person
in possession of the homestead other than the judgment debtor. In addition, the notice
of sale must also be served upon all persons who have recorded a request for notice in
accordance with section 580.032.

Sec. 4.

Minnesota Statutes 2007 Supplement, section 550.22, is amended to read:

550.22 CERTIFICATE OF SALE OF REALTY.

When a sale of real property is made upon execution, or pursuant to a judgment or
order of a court, unless otherwise specified therein, the officer shall execute and deliver
to the purchaser a certificate containing:

(1) a description of the execution, judgment, or order;

(2) a description of the property;

(3) the date of the sale and the name of the purchaser;

(4) the price paid for each parcel separately;

(5) if subject to redemption, the time allowed by law therefor;

new text begin (6) the interest rate in effect on the date of the sheriff's sale; new text end and

deleted text begin (6) deleted text end new text begin (7) new text end the amount of the debtor's homestead exemption, if any, as determined under
section 550.175.

Such certificate shall be executed, acknowledged, and recorded in the manner
provided by law for a conveyance of real property, shall be prima facie evidence of the
facts stated, and, upon expiration of the time for redemption, shall operate as a conveyance
to the purchaser of all the right, title, and interest of the person whose property is sold in
and to the same, at the date of the lien upon which the same was sold. Any person desiring
to perpetuate evidence that any real property sold under this section was not homestead
real property may procure an affidavit by the person enforcing the judgment, or that
person's attorney, or someone having knowledge of the facts, setting forth that the real
property was not homestead real property. The affidavit shall be recorded by the county
recorder or registrar of titles, and the affidavit and certified copies of the affidavit shall
be prima facie evidence of the facts stated in the affidavit.

Sec. 5.

Minnesota Statutes 2007 Supplement, section 550.24, is amended to read:

550.24 REDEMPTION OF REALTY.

(a) Upon the sale of real property, if the estate sold is less than a leasehold of two
years' unexpired term, the sale is absolute. In all other cases the property sold, or any
portion thereof which has been sold separately, is subject to redemption as provided
in this section.

(b) The judgment debtor, the debtor's heirs, successors, legal representatives, or
assigns may redeem within one year after the day of sale, or order confirming sale if the
property is a homestead, by paying, to the purchaser or the officer making the sale, the
amount for which the property was sold with interest new text begin at the rate stated in the certificate of
sale new text end , on the amount of the sale in excess of the homestead exemption, at the judgment rate
and if the purchaser is a creditor having a prior lien, the amount thereof, with interest, on
the amount of the sale in excess of the homestead exemption, at the judgment rate together
with any costs as provided in sections 582.03 and 582.031.

(c) If there is no redemption during the debtor's redemption period, creditors having
a lien, legal or equitable, on the property or some part thereof, subsequent to that on
which it was sold may redeem in the manner provided for redemption by creditors of the
mortgagor in section 580.24, in the order of their respective liens.

(d) If the property is abandoned during the judgment debtor's redemption period,
the person holding the sheriff's certificate may request that the court reduce the judgment
debtor's redemption period to five weeks using the procedures provided for a foreclosure
by action in section 582.032, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for redemptions made on or after
August 1, 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 580.02, is amended to read:

580.02 REQUISITES FOR FORECLOSURE.

To entitle any party to make such foreclosure, it is requisite:

(1) that some default in a condition of such mortgage has occurred, by which the
power to sell has become operative;

(2) that no action or proceeding has been instituted at law to recover the debt then
remaining secured by such mortgage, or any part thereof, or, if the action or proceeding
has been instituted, that the same has been discontinued, or that an execution upon the
judgment rendered therein has been returned unsatisfied, in whole or in part;

(3) that the mortgage has been recorded and, if it has been assigned, that all
assignments thereof have been recorded; provided, that, if the mortgage is upon registered
land, it shall be sufficient if the mortgage and all assignments thereof have been duly
registered new text begin ; and
new text end

new text begin (4) before the notice of pendency as required under section 580.032 is recorded, the
party has complied with section 580.021 new text end .

Sec. 7.

new text begin [580.021] FORECLOSURE PREVENTION COUNSELING.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to foreclosure of mortgages under
this chapter on property consisting of one to four family dwelling units, one of which
the owner occupies as the owner's principal place of residency on the date of service of
the notice of sale of the owner.
new text end

new text begin Subd. 2. new text end

new text begin Requirement to provide notice of opportunity for counseling. new text end

new text begin When
the written notice required under section 47.20, subdivision 8, is provided and before the
notice of pendency under section 580.032, subdivision 3, is recorded, a party foreclosing
on a mortgage must provide to the mortgagor information contained in a form prescribed
in section 580.022, subdivision 1, that:
new text end

new text begin (1) foreclosure prevention counseling services provided by an authorized foreclosure
prevention agency are available; and
new text end

new text begin (2) notice that the party will transmit the homeowner's name, address, and telephone
number to an approved foreclosure prevention agency.
new text end

new text begin Nothing in this subdivision prohibits the notices required by this subdivision
from being provided concurrently with the written notice required under section 47.20,
subdivision 8.
new text end

new text begin For the purposes of this section, an "authorized foreclosure counseling agency" is a
nonprofit or government agency approved by the United States Department of Housing
and Urban Development or funded by the Minnesota Housing Finance Agency to provide
foreclosure prevention counseling services.
new text end

new text begin Subd. 3. new text end

new text begin Notification to authorized counseling agency. new text end

new text begin The party entitled to
foreclose shall, within one week of sending the notice prescribed in section 580.022,
provide to the appropriate authorized foreclosure prevention agency the mortgagor's
name, address, and most recent known telephone number.
new text end

new text begin Subd. 4. new text end

new text begin Notice of provision of counseling; request for contact information. new text end

new text begin (a)
An authorized foreclosure prevention agency that contacts or is contacted by a mortgagor
or the mortgagor's authorized representative and agrees to provide foreclosure prevention
assistance services to the mortgagor or representative must provide the form prescribed in
section 580.022 to the mortgagee. The form serves as notice to the mortgagee that the
mortgagor is receiving foreclosure prevention counseling assistance.
new text end

new text begin (b) The mortgagee must return the form to the authorized foreclosure prevention
agency within 15 days of receipt of the form with the name and telephone number of the
mortgagee's agent. The agent must be a person authorized by the mortgagee to:
new text end

new text begin (1) discuss with the authorized foreclosure prevention agency or the mortgagor
the terms of the mortgage; and
new text end

new text begin (2) negotiate any resolution to the mortgagor's default.
new text end

new text begin (c) Nothing in this subdivision requires a mortgagee to reach a resolution relating to
the mortgagor's default.
new text end

Sec. 8.

new text begin [580.022] FORMS.
new text end

new text begin Subdivision 1. new text end

new text begin Counseling form. new text end

new text begin The notice required under section 580.021,
subdivision 2, clause (2), must be printed on colored paper that is other than the color of
any other document provided with it and must appear substantially as follows:
new text end

new text begin "PREFORECLOSURE NOTICE
new text end

new text begin Foreclosure Prevention Counseling
new text end

new text begin Why You Are Getting This Notice
new text end

new text begin We do not want you to lose your home and your equity. Government-approved
nonprofit agencies are available to, if possible, help you prevent foreclosure.
new text end

new text begin We have given your contact information to an authorized foreclosure prevention
counseling agency to contact you to help you prevent foreclosure.
new text end

new text begin Who Are These Foreclosure Prevention Counseling Agencies
new text end

new text begin They are nonprofit or government agencies who are experts in housing and
foreclosure prevention counseling and assistance. They are experienced in dealing with
lenders and homeowners who are behind on mortgage payments and can help you
understand your options and work with you to address your delinquency. They are funded
by the Minnesota Housing Finance Agency or approved by the United States Department
of Housing and Urban Development. They are not connected with us in any way.
new text end

new text begin Which Agency Will Contact You
new text end

new text begin [insert name, address, and telephone number of agency]
new text end

new text begin You can also contact them directly."
new text end

new text begin Subd. 2. new text end

new text begin Notice of Counseling and Request for Contact Information form. new text end

new text begin The
notice required in section 580.021, subdivision 4, must be substantially in the following
form:
new text end

new text begin "PREFORECLOSURE NOTICE
new text end

new text begin NOTICE OF PROVISION OF FORECLOSURE PREVENTION COUNSELING
AND REQUEST FOR MORTGAGEE CONTACT INFORMATION
new text end

new text begin [Insert agency name] has been contacted by your customer regarding foreclosure
prevention counseling in response to the current foreclosure proceedings involving the
customer's real property. Please provide the following contact information pursuant to
Minnesota Statutes, section 580.021, subdivision 4, by completing and returning this form
via fax [insert fax number] or via e-mail at [insert e-mail address].
new text end

new text begin To be completed by Counseling Agency new text end

new text begin Consumer Name: _ new text end

new text begin CONSUMER CONTACT INFORMATION: new text end

new text begin Address: _ new text end

new text begin City, State, Zip Code: _ new text end

new text begin Daytime Phone: _ new text end

new text begin Nighttime Phone: _ new text end

new text begin PROPERTY AT RISK FOR FORECLOSURE (if differs from above): new text end

new text begin Address: _ new text end

new text begin City, State, Zip Code: _ new text end

new text begin COUNSELING AGENCY CONTACT: new text end

new text begin Name: _ new text end

new text begin Agency: _ new text end

new text begin Phone: _ new text end

new text begin Fax: _ new text end

new text begin E-mail: _ new text end

new text begin To be completed by Lender new text end

new text begin Contact Name: _ new text end

new text begin Address: _ new text end

new text begin City, State, Zip Code: _ new text end

new text begin Phone: _ new text end

new text begin Fax: _ new text end

new text begin E-mail: _ " new text end

Sec. 9.

Minnesota Statutes 2006, section 580.03, is amended to read:

580.03 NOTICE OF SALE; SERVICE ON OCCUPANT.

new text begin Commencing at least new text end six new text begin weeks before the appointed time of sale, three new text end 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 occupied. 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 deleted text begin section deleted text end new text begin sections new text end
580.041 new text begin and 580.042 new text end must be served simultaneously with the notice of foreclosure
required by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices served on or after August
1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 580.041, subdivision 1b, is amended to read:

Subd. 1b.

Form and delivery of notice.

The notice required by this section must
be in 14-point boldface type and must be printed on colored paper that is other than the
color of the notice of foreclosure and that does not obscure or overshadow the content of
the notice. The title of the notice must be in 20-point boldface type. The notice must be
on its own page. The notice required by this section must be delivered with the notice of
foreclosure required by sections 580.03 and 580.04. The notice required by this section
also must be delivered with each subsequent written communication regarding the
foreclosure mailed to the mortgagor by the foreclosing party up to the day of redemption new text begin ,
except that a person may not be held liable in an action brought under this section for a
violation of this section for failure to deliver the subsequent notices if the person shows by
a preponderance of evidence that the violation was not intentional and resulted from a bona
fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the
error new text end . A foreclosing mortgagee will be deemed to have complied with this section if it
sends the notice required by this section at least once every 60 days during the period of
the foreclosure process. The notice required by this section must not be published.

Sec. 11.

Minnesota Statutes 2006, section 580.041, subdivision 2, is amended to read:

Subd. 2.

Content of notice.

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

"Help For Homeowners in Foreclosure

deleted text begin Minnesota law requires that we send you this notice about the foreclosure process.
Please read it carefully.
deleted text end

new text begin The attorney preparing this foreclosure is: new text end _

new text begin (Attorney name, address, phone) new text end

new text begin It is being prepared for: new text end

_

new text begin (Lender name, loss mitigation phone number) new text end

new text begin AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring
your mortgage up to date. You must pay this amount to keep your house from going
through a sheriff's sale. The sheriff's sale is scheduled for [insert date] at [insert
time] at [insert place].
new text end

Mortgage foreclosure is a complex process. deleted text begin Some deleted text end People may deleted text begin approach deleted text end new text begin contact new text end you
deleted text begin about "saving" deleted text end new text begin with advice and offers to help "save" new text end your home. deleted text begin You should be
careful about any such promises.
deleted text end

deleted text begin The state encourages you to become informed about your options in foreclosure
before entering into any agreements with anyone in connection with the foreclosure
of your home. 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 Minnesota Housing
Finance Agency (MHFA) at (insert telephone number). The state does not guarantee
the advice of these agencies.
deleted text end

deleted text begin Do not delay dealing with the foreclosure because your options may become more
limited as time passes."
deleted text end

new text begin 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.
new text end

new text begin Getting Help
new text end

new text begin 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.
new text end

new text begin Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466
or www.hocmn.org to get the phone number and location of the nearest counseling
organization. Call today. The longer you wait, the fewer options you may have for
a desirable result.
new text end

new text begin Information About the Foreclosure Process
new text end

new text begin You do not need to move at the time of the sheriff's sale. After the sheriff's sale you
have the right to "redeem." Redeem means that you pay off the entire loan amount
plus fees to keep your house. You can keep living in your home for a period of time.
This is called a "redemption period." The redemption period is [insert number of
months] months after the sheriff's sale. This redemption period is your chance to
try and sell your home or refinance it with a different loan. You can also pay the
redemption amount with any other funds you have available. At the end of the
redemption period you will have to leave your home. If you do not, the person or
company that bid on your home at the sheriff's sale has the right to file an eviction
against you in district court."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices served under section
580.03 on or after August 1, 2008.
new text end

Sec. 12.

new text begin [580.042] FORECLOSURE ADVICE NOTICE TO TENANT.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to foreclosure of mortgages
under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Form of delivery of notice. new text end

new text begin The notice required by this section must be in
14-point boldface type and must be printed on colored paper that is other than the color of
the notice of foreclosure and of the notice to be given under section 580.041, subdivision
1b, and that does not obscure or overshadow the content of the notice. The title of the
notice must be in 20-point boldface type. The notice must be on its own page.
new text end

new text begin Subd. 3. new text end

new text begin Content of notice. new text end

new text begin The notice required by this section must appear
substantially as follows.
new text end

new text begin " new text end new text begin Foreclosure: Advice to Tenants
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin Moving out of the property early might be a violation of your lease. The date
of the sheriff's foreclosure sale is in the attached foreclosure notice. In most cases you
do not need to move from the property before the sheriff's 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.
new text end

new text begin In most cases, your landlord has six months after the date of the sheriff's 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.
new text end

new text begin 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.
new text end

new text begin 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."
new text end

new text begin Subd. 4. new text end

new text begin Affidavit. new text end

new text begin Any person may establish compliance with or inapplicability of
this section by recording, with the county recorder or registrar of titles, an affidavit by
a person having knowledge of the facts, stating that the notice required by this section
has been delivered in compliance with this section. The affidavit and a certified copy
of a recorded affidavit is prima facie evidence of the facts stated in the affidavit. The
affidavit may be recorded regarding any foreclosure sale, including foreclosure sales
that occurred prior to August 1, 2008, and may be recorded separately or as part of the
record of a foreclosure.
new text end

new text begin Subd. 5. new text end

new text begin Validation of foreclosure sales; remedy for violation. new text end

new text begin (a) No mortgage
foreclosure sale under this chapter is invalid because of failure to comply with this section.
new text end

new text begin (b) The remedy for a violation of this section is limited to actual damages caused by
the violation, not to exceed $1,000, and is available only to the tenant of the mortgaged
premises who occupied the mortgaged premises during the redemption period of the
mortgagor. Any legal action brought to enforce the provisions of this section must be
commenced by the last day of the redemption period of the mortgagor. A person is not
liable in an action for a violation of this section if the person shows by a preponderance of
the evidence that the violation was not intentional and resulted from a bona fide error and
the person adopted and maintained reasonable procedures to avoid the error. A plaintiff
does not have cause of action if the defendant has complied with section 580.03.
new text end

Sec. 13.

Minnesota Statutes 2006, section 580.06, is amended to read:

580.06 SALE, HOW AND BY WHOM MADE.

The sale shall be made by the sheriff or the sheriff's deputy at public vendue 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 deleted text begin the setting of the sun deleted text end new text begin 4:00 p.m new text end .

Sec. 14.

Minnesota Statutes 2006, section 580.07, is amended to read:

580.07 POSTPONEMENT.

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, deleted text begin and continuing the
publication until the time to which the sale is postponed, deleted text end at the expense of the party
requesting the postponement.

Sec. 15.

Minnesota Statutes 2006, 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;

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

deleted text begin (5) deleted text end new text begin (6) new text end 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. 16.

Minnesota Statutes 2006, section 580.23, subdivision 1, is amended to read:

Subdivision 1.

Six-month redemption period.

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 new text begin as stated
in the certificate of sale new text end and, if no rate be provided in the deleted text begin mortgage note deleted text end new text begin certificate of
sale new text end , 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. new text begin 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. 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 sheriff's certificate or the attorney for the holder of the sheriff's certificate
that the holder of the sheriff's certificate has agreed to accept a specific sum less than the
full amount due for redemption.
new text end

Sec. 17.

Minnesota Statutes 2007 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 seven 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 seven days after
the time allowed the prior lienholder by paying the amount required under this section.
However, no creditor is entitled to redeem unless, deleted text begin within deleted text end new text begin one week or more prior to the
expiration of new text end 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 deleted text begin in each office deleted text end new text begin with each county recorder and registrar of titles new text end where the
notice new text begin of the creditor's intention to redeem new text end is recorded all documents necessary to create
the lien on the mortgaged premises and to evidence the creditor's ownership of the lien new text begin ,
including a copy of any money judgment necessary to create the lien new text end ; and

(3) after complying with clauses (1) and (2), delivers to the sheriff who conducted
the foreclosure sale or the sheriff's successor in office 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 seven-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 seven-day
period to redeem.

(c) The amount required to redeem from the holder of the sheriff's certificate of sale
is the amount required under section 580.23. The amount required to redeem from a
person 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; plus

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

The amount required to redeem may be paid to the holder of the sheriff's certificate
of sale or the certificate of redemption, as the case may be, or to the sheriff for the holder.

Sec. 18.

Minnesota Statutes 2006, section 580.25, is amended to read:

580.25 REDEMPTION, HOW MADE.

Redemption shall be made as provided in this section.

The person desiring to redeem shall pay the amount required by law for the
redemption, and shall produce to the person or officer receiving the redemption payment:

(1) a copy of the docket of the judgment, or of the new text begin recorded new text end deed or mortgage, or
of the record or files evidencing any other lien under which the person claims a right to
redeem deleted text begin , certified by the officer with custody of the docket, record, or files, or the original
deed or mortgage with the certificate of record endorsed on it deleted text end ;

(2) a copy of any new text begin recorded new text end assignment necessary to evidence the person's ownership
of the lien deleted text begin , certified by the officer with custody of the assignment, or the original of each
instrument of assignment with the certificate of record endorsed on it deleted text end . If the redemption is
under an assignment of a judgment, the assignment shall be filed in the court entering the
judgment, as provided by law, and the person so redeeming shall produce a deleted text begin certified deleted text end copy
of it and of the record of its filing, and the copy of the docket shall show that the proper
entry was made upon the docket. No further evidence of the assignment of the judgment is
required unless the mortgaged premises or part of it is registered property, in which case
the judgment and all assignments of the judgment must be entered as a memorial upon the
certificate of title to the mortgaged premises and deleted text begin the original deleted text end new text begin a copy of the new text end judgment and
each assignment with the certificate of record endorsed on it deleted text begin , or a copy certified by the
registrar of titles, deleted text end must be produced; and

(3) an affidavit of the person or the person's agent, showing the amount then actually
claimed due on the person's lien and required to be paid on the lien in order to redeem
from the person. new text begin Additional fees and charges may be claimed due only as provided in
section 582.03.
new text end

If redemption is made to the sheriff, the sheriff may charge a fee of $250 for issuing
the certificate of redemption and any related service. No other fee may be charged by the
sheriff for a redemption.

Within 24 hours after a redemption is made, the person redeeming shall cause the
documents so required to be produced to be deleted text begin filed deleted text end new text begin recorded new text end with the county recorder, or
registrar of titles, who may receive fees as prescribed in section 357.18 or 508.82. If the
redemption is made at any place other than the county seat, it is sufficient forthwith to
deposit the documents in the nearest post office, addressed to the recorder or registrar of
titles, with the postage prepaid. A person recording documents produced for redemption
shall, on the same day, deliver copies of the documents to the sheriff for public inspection.
The sheriff may receive a fee of $20 for the documents delivered following a redemption.
The sheriff shall note the date of delivery on the documents and shall maintain for public
inspection all documents delivered to the sheriff for a period of six months after the end of
the mortgagor's redemption period.

Sec. 19.

Minnesota Statutes 2006, section 580.28, is amended to read:

580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE;
REDEMPTION.

When an action is brought wherein it is claimed that any mortgage as to the plaintiff
or person for whose benefit the action is brought is fraudulent or void, or has been paid or
discharged, in whole or in part new text begin , or the relative priority or the validity of liens is disputed new text end ,
if such mortgage has been foreclosed by advertisement, and the time for redemption
from the foreclosure sale will expire before final judgment in such action, the plaintiff or
beneficiary having the right to redeem, for the purpose of saving such right in case the
action fails, may deposit with the sheriff before the time of redemption expires the amount
for which the mortgaged premises were sold, with interest thereon to the time of deposit,
together with a bond to the holder of the sheriff's certificate of sale, in an amount and with
sureties to be approved by the sheriff, conditioned to pay all interest that may accrue or be
allowed on such deposit if the action fail. The person shall, in writing, notify such sheriff
that the person claims the mortgage to be fraudulent or void, or to have been paid or
discharged, in whole or in part, as the case may be, and that such action is pending, and
direct the sheriff to retain such money and bond until final judgment. In case such action
fails, such deposit shall operate as a redemption of the premises from such foreclosure
sale, and entitle the plaintiff to a certificate thereof. Such foreclosure, deposit, bond, and
notice shall be brought to the attention of the court by supplemental complaint in the
action, and the judgment shall determine the validity of the foreclosure sale, and the rights
of the parties to the moneys and bond so deposited, which shall be paid and delivered by
the sheriff as directed by such judgment upon delivery to the sheriff of a certified copy
thereof. The remedy herein provided shall be in addition to other remedies now existing.

Sec. 20.

Minnesota Statutes 2006, section 580.30, is amended to read:

580.30 MORTGAGES, WHEN REINSTATED.

new text begin Subdivision 1. new text end

new text begin Reinstatement. new text end

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, together 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.

new text begin Subd. 2. new text end

new text begin Request by sheriff. new text end

new text begin Upon written request by the sheriff, the holder of the
mortgage or the holder's legal representative shall provide to the sheriff within seven days
of the date of the request by the sheriff 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 request within seven days of the date
of the request, the sheriff shall postpone the sheriff's sale and the sheriff shall announce
at the sheriff's sale the postponement of the sale. The postponement does not need to be
published. If the request by the sheriff is made seven days or less before the sheriff's sale,
the holder of the mortgage or the holder's representative shall make a good faith effort to
respond to the sheriff before the sheriff's sale, but the sheriff may conduct the sheriff's sale
without a response from the holder of the mortgage or the holder's legal representative.
new text end

Sec. 21.

Minnesota Statutes 2006, section 581.10, is amended to read:

581.10 REDEMPTION BY MORTGAGOR, CREDITOR.

The mortgagor, or those claiming under the mortgagor, within the time specified in
section 580.23 or 582.032, whichever applies, after the date of the order of confirmation,
may redeem the premises sold, or any separate portion thereof, by paying the amount bid
therefor, with interest thereon from the time of sale deleted text begin at the rate provided to be paid on the
mortgage debt, not to exceed eight percent per annum, and, if no rate to be provided in the
mortgage, deleted text end at the rate deleted text begin of six percent deleted text end new text begin stated in the certificate of sale or, if no rate is provided
in the certificate of sale, at the rate of six percent per annum new text end , together with any further sum
which may be payable pursuant to section 582.03 and 582.031. Creditors having a lien
may redeem in the order and manner specified in section 580.24.

Sec. 22.

Minnesota Statutes 2006, section 582.03, is amended to read:

582.03 PURCHASER MAY PAY TAXES AND OTHER EXPENSES DUE.

new text begin Subdivision 1. new text end

new text begin Allowable costs collectable upon redemption. new text end

The deleted text begin purchaser at
any deleted text end new text begin holder of any sheriff's certificate of new text end sale, deleted text begin upon deleted text end new text begin from a new text end foreclosure new text begin by advertisement
or action new text end of new text begin a new text end mortgage new text begin or lien new text end or execution deleted text begin or at any judicial sale deleted text end new text begin , or the holder of
any certificate of redemption as a junior creditor new text end during the period of redemption, may
pay new text begin and claim the following on redemption: new text end any taxes or assessments on which any
penalty would otherwise accrue, and deleted text begin may pay the premium upon any policy of insurance
procured in renewal of any expiring policy upon deleted text end new text begin any costs of a hazard insurance policy
for the holder's interest in the new text end mortgaged premises deleted text begin , may pay deleted text end new text begin 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, any 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, new text end any costs incurred under
section 582.031, and deleted text begin may, in case deleted text end any interest or installment of principal upon any prior or
superior mortgage, lien, or contract for deed deleted text begin is deleted text end in default or deleted text begin shall become deleted text end new text begin that becomes new text end
due during the period of redemption deleted text begin , pay the same, and, deleted text end new text begin . new text end In all such cases, the deleted text begin sum deleted text end new text begin costs new text end
so paid new text begin and claimed due new text end , with interest, shall be a part of the sum required to be paid to
redeem from such sale. new text begin No other costs, fees, interest, or other amount may be added to
the amount necessary to redeem.
new text end

new text begin Subd. 2. new text end

new text begin Affidavit of allowable costs. new text end

deleted text begin Such deleted text end new text begin Any new text end payments new text begin made and claimed due
under subdivision 1 new text end shall be proved by the affidavit of the deleted text begin purchaser or the purchaser's deleted text end new text begin
holder of the sheriff's certificate or its new text end agent or attorney, deleted text begin stating the items deleted text end new text begin itemizing each
of the allowable costs new text end and describing the premises deleted text begin , which must be filed for record with
the county recorder or registrar of titles, and a copy thereof shall be furnished to the
sheriff at least ten days before the expiration of the period of redemption deleted text end . new text begin 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 sheriff's certificate 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 sheriff's certificate may file a supplemental affidavit if additional allowable costs are
incurred during the redemption period. If the holder of the sheriff's certificate 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 sheriff's
certificate, 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 sheriff's
certificate even if the amount calculated by the sheriff is less than the actual amount due.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for excessive costs. new text end

new text begin At any time within one year after the
expiration of the mortgagor's redemption period, the redeeming party, heirs, or assigns
may recover from the holder of the sheriff's certificate three times the amount of any sums
declared as costs or disbursements on the affidavit of allowable costs but not actually paid
by the holder, or three times the amount of any sums determined to exceed a reasonable
cost for the declared item where the excess has been retained by the lender, unless the
disputed amounts are paid to the redeeming party, heirs, or assigns prior to entry of
judgment.
new text end

Sec. 23.

Minnesota Statutes 2006, section 582.031, is amended to read:

582.031 LIMITED RIGHT OF ENTRY.

Subdivision 1.

Right of entry.

If premises described in a mortgage or sheriff's
certificate are vacant or unoccupied, the holder of the mortgage or sheriff's certificate or the
holder's agents and contractors may, but is under no obligation to, enter upon the premises
to protect the premises from waste, until the holder of the mortgage or sheriff's certificate
receives notice that the premises are occupied. The holder of the mortgage or sheriff's
certificate does not become a mortgagee in possession by taking actions authorized under
this section. An affidavit of the sheriff, the holder of the mortgage or sheriff's certificate, 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.

Subd. 2.

Authorized actions.

The holder of the mortgage or sheriff's certificate
may take the following actions to protect the premises from waste deleted text begin : deleted text end new text begin or from falling below
minimum community standards for public safety and sanitation: make reasonable periodic
inspections, new text end install or change locks on doors and windows, board windows, install an
alarm system, deleted text begin provide a resident caretaker, deleted text end 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 sheriff's certificate 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 to protect the
premises from waste new text begin or from falling below minimum community standards for public
safety and sanitation new text end may be added to the principal balance of the mortgage. 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 deleted text begin purchaser at the foreclosure sale deleted text end new text begin holder of any sheriff's
certificate of sale or certificate of redemption new text end 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 sheriff's certificates, at law
or under the applicable mortgage agreements.

Sec. 24.

Laws 2004, chapter 263, section 26, is amended to read:

Sec. 26. EFFECTIVE DATE; EXPIRATION.

Sections 1 to 18, 22, 23, and 25 are effective August 1, 2004 deleted text begin , and expire December
31, 2009 deleted text end . Sections 19, 20, 21, and 24 are effective July 1, 2004.