SF 2559

as introduced - 86th Legislature (2009 - 2010) Posted on 02/10/2010 09:39am

A bill for an act
relating to real estate; making a conforming change to provide for the right of
the borrower to obtain a postponement of a foreclosure sale that has a 12-month
redemption period, as is now available for a six-month redemption period;
amending Minnesota Statutes 2009 Supplement, section 580.07, subdivisions
2, 3.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 580.07, subdivision 2, is
amended to read:

Subd. 2.

Postponement by mortgagor or owner.

(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 new text begin , in the manner provided in this subdivision, new text end
postpone the sale to the first date that is not a Saturday, Sunday, or legal holiday and is new text begin :
new text end

new text begin (1) new text end five months after the originally scheduled date of sale deleted text begin in the manner provided in
this subdivision deleted text end new text begin if the original redemption period was six months under section 580.23,
subdivision 1; or
new text end

new text begin (2) 11 months after the originally scheduled date of sale if the original redemption
period was 12 months under section 580.23, subdivision 2 new text end . 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 contents of the notice of sale, service of the notice of sale if the
occupant was served with the notice of sale prior to postponement under this subdivision,
or publication of the notice of sale if publication was commenced prior to postponement
under this subdivision, notwithstanding the service and publication time periods specified
in section 580.03, 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.

(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 begin EFFECTIVE DATE. new text end

new text begin This section is effective 30 days after the date of final
enactment and applies to foreclosure sales scheduled to occur on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 580.07, subdivision 3, is
amended to read:

Subd. 3.

Affidavit form.

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

STATE OF _
COUNTY OF _

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

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 begin if the original redemption period is six months, or for 11 months if
the original redemption period is 12 months new text end .

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.

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 begin if the original redemption period was six months, or for 11 months if the
original redemption period was 12 months new text end .

___________________________________________ (signature(s) of owner)

Signed and sworn to (or affirmed) before me on __________ (date) by ________________
(name(s) of person(s) making statement).

___________________________________________ (signature of notary public)

Notary Public

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective 30 days after the date of final
enactment and applies to foreclosure sales scheduled to occur on or after that date.
new text end