1.1 	A bill for an act
1.2 	relating to real property; modifying the right of reinstatement and other 
1.3 	provisions relating to mortgage foreclosure;amending Minnesota Statutes 2006, 
1.4 	sections 580.30; 582.27, by adding a subdivision; proposing coding for new 
1.5 	law in Minnesota Statutes, chapter 582.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2006, section 580.30, is amended to read:
1.8 	580.30 MORTGAGES, WHEN REINSTATED.
1.9 	In any proceedings for the foreclosure of a real estate mortgage, whether by action or 
1.10 	by advertisement, if at any time before the sale of the premises under such foreclosure the 
1.11 	mortgagor, the owner, or any holder of any subsequent encumbrance or lien, or any one 
1.12 	for them, shall pay or cause to be paid to the holder of the mortgage so being foreclosed, 
1.13 	or to the attorney foreclosing the same, or to the sheriff of the county, the amount actually 
1.14 	due thereon and constituting the default actually existing in the conditions of the mortgage 
1.15 	at the time of the commencement of the foreclosure proceedings, including then, and 
1.16 	in that event, the mortgage shall be fully reinstated and further proceedings in such 
1.17 	foreclosure shall be thereupon abandoned. Insurance, delinquent taxes, if any, upon the 
1.18 	premises, interest to date of payment, cost of publication and services of process or 
1.19 	notices, attorney's fees not exceeding $150 or one-half of the attorney's fees authorized by 
1.20 	section 582.01, whichever is greater, together with other lawful disbursements necessarily 
1.21 	incurred in connection with the proceedings by the party foreclosing, then, and in that 
1.22 	event, the mortgage shall be fully reinstated and further proceedings in such foreclosure 
1.23 	shall be thereupon abandoned are due and payable at the time the premises are sold. 

2.1 	Sec. 2. [582.21] TAXES TO BE PAID IN FULL.
2.2 	No party may foreclose on any mortgage of real estate, whether by action or by 
2.3 	advertisement, unless the party bringing forth the foreclosure proceedings has paid in full, 
2.4 	any outstanding taxes or assessments upon the mortgaged promises.

2.5 	Sec. 3. Minnesota Statutes 2006, section 582.27, is amended by adding a subdivision 
2.6 	to read:
2.7 		Subd. 4.Right of reinstatement coterminous with right of redemption. A person 
2.8 	being foreclosed on has the right to reinstatement of the mortgage pursuant to section 
2.9 	580.30, for the same period the person has a right to redeem under section 582.032.

2.10 	Sec. 4. NOTICE OF RIGHT TO REINSTATE AND REDEEM.
 2.11 	(a) The attorney general shall prepare the contents of a form for notice, which shall 
2.12 	advise consumers of their rights of redemption and reinstatement under Minnesota law. 
2.13 	In adopting this form, the attorney general is exempt from the rulemaking provisions of 
2.14 	Minnesota Statutes, chapter 14, including section 14.386. 
2.15 	(b) This notice must be served with any foreclosure notice of property containing 
2.16 	a homestead that is served on the person in possession of the property and with any 
2.17 	subsequent communication regarding the foreclosure that is mailed by the foreclosing 
2.18 	party. The notice under this section must be in 14-point, boldface type and must be printed 
2.19 	on colored paper that is other than the color of the notice of foreclosure and that does not 
2.20 	overshadow or obscure the content of the notice. The title of the notice must be in 20-point, 
2.21 	boldface type. The notice must be on its own page. The notice required by this section 
2.22 	must appear substantially in the form adopted by the attorney general in paragraph (a).

2.23 	Sec. 5. EFFECTIVE DATE.
 2.24 	This act is effective the day following final enactment and applies to foreclosure 
2.25 	proceedings commenced on or after that date.