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SF 2445

as introduced - 88th Legislature (2013 - 2014) Posted on 08/28/2014 03:08pm

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

Current Version - as introduced

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A bill for an act
relating to mortgage foreclosures; amending the definition of a small servicer;
clarifying the Foreclosure Curative Act; amending Minnesota Statutes 2013
Supplement, sections 582.043, subdivision 1; 582.27, subdivision 1.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 582.043, subdivision 1,
is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Foreclosure sale date" means either:

(1) the date of the foreclosure sale contained in the notice that has been either served
or published as required under section 580.03, or 550.18 and 550.19; or

(2) the date to which the foreclosure sale is postponed by the borrower under section
580.07, subdivision 2,

whichever is later.

(c) "Loss mitigation option" means a temporary or permanent loan modification, a
forbearance agreement, a repayment agreement, a principal reduction, capitalizing arrears,
or any other relief intended to allow a mortgagor to retain ownership of the property.

(d) "Mortgagor" means a person who is liable on the promissory note secured by the
mortgage, except that the mortgagor does not include a person who has surrendered the
mortgaged property, as evidenced by either a letter or other written notice confirming the
surrender or by delivery of the keys to the property to the servicer or authorized agent.

(e) "Servicer" means a residential mortgage servicer as defined in section 58.02,
subdivision 20.

(f) "Small servicer" means a servicer that is either:

(1) a small servicer, as defined in Code of Federal Regulations, title 12, section
1026.41, paragraph (e), clause (4); deleted text beginor
deleted text end

(2) a Housing Finance Agency, as defined in Code of Federal Regulations, title
24, section 266.5deleted text begin.deleted text endnew text begin; or
new text end

deleted text begin Until August 1, 2014, "small servicer" also meansdeleted text endnew text begin (3)new text end a servicer that has conducted
125 or fewer foreclosure sales during the preceding 12 months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 582.27, subdivision 1, is
amended to read:


Subdivision 1.

Section 582.25.

new text begin(a) new text endUpon expiration of the periods specified in this
section, the provisions of section 582.25 apply to a mortgage foreclosure sale subject
to this section:

(1) as to all of the provisions of section 582.25, except clauses (2) and (23), one year
after the last day of the redemption period of the mortgagor, the mortgagor's personal
representatives or assigns;

(2) as to clause (2), ten years after the date of the foreclosure sale; and

(3) as to clause (23), the expiration of the mortgagor's applicable redemption period
as specified in section 580.23 or 582.032.

new text begin (b) The time limits provided under paragraph (a) apply notwithstanding any
common law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end