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SF 1302

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:19am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to real property; modifying provisions governing eviction of tenants
in property subject to mortgage foreclosure or termination of contract for
deed; specifying requirements for vendors under contracts for deed; modifying
mortgage foreclosure notices and information requirements; modifying
provisions for sheriff's sale postponement and perpetuating evidence of sale;
amending Minnesota Statutes 2008, sections 504B.285, subdivision 1; 507.235,
by adding a subdivision; 580.021, subdivisions 1, 2; 580.025; 580.04; 580.041,
subdivision 1a; 580.042, subdivision 1; 580.07; 580.15.

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

Section 1.

Minnesota Statutes 2008, section 504B.285, subdivision 1, is amended to
read:


Subdivision 1.

Grounds.

The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; or

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the property, provided that if the person holding the
real property after the expiration of the time for redemption or termination was a tenant
during the redemption or termination perioddeleted text begin, the person entered into thedeleted text end new text beginunder a new text endlease of
any duration new text beginand the lease began new text endafter the date deleted text beginof the notice ofdeleted text end new text beginthe new text endmortgage deleted text beginforeclosuredeleted text end or
contract for deed deleted text begincancellation anddeleted text end new text beginwas executed but new text endprior to the expiration of the time for
redemption or termination, and the person has received:

(A) at least two months' written notice to vacate no sooner than one month after the
expiration of the time for redemption or termination, provided that the tenant pays the
rent and abides by all terms of the lease; or

(B) at least two months' written notice to vacate no later than the date of the
expiration of the time for redemption or termination, which notice shall also state that the
sender will hold the tenant harmless for breaching the lease by vacating the premises if the
mortgage is redeemed or the contract is reinstated;

(2) any person holds over real property after termination of the time for which
it is demised or leased to that person or to the persons under whom that person holds
possession, contrary to the conditions or covenants of the lease or agreement under which
that person holds, or after any rent becomes due according to the terms of such lease or
agreement; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

Sec. 2.

Minnesota Statutes 2008, section 507.235, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Requirements of vendor. new text end

new text begin (a) A vendor entering into a contract for deed
involving residential real property must, contemporaneously with the execution of the
contract for deed:
new text end

new text begin (1) deliver to the vendee a copy of the contract for deed containing original
signatures in recordable form; and
new text end

new text begin (2) pay, or reimburse the vendee for payment of, any delinquent taxes necessary for
recordation of the contract for deed, unless the contract for deed provides for the vendee to
pay the delinquent taxes.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "contract for deed" has the meaning given in section 559.202, subdivision 2; and
new text end

new text begin (2) "residential real property" has the meaning given in section 559.202, subdivision
2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts for deed acknowledged
on or after August 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 580.021, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

This section applies to foreclosure of mortgages new text beginby
advertisement
new text endunder this chapter new text beginand foreclosure of mortgages by action under chapter
581
new text endon property consisting of one to four family dwelling units, one of which the owner
occupies as the owner's principal place of residency deleted text beginon the date of service of the notice of
sale of the owner
deleted text endnew text begin when the notice of pendency under section 580.032 or the lis pendens
for a foreclosure under chapter 581 is recorded
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 or the lis pendens for a foreclosure under chapter
581 is recorded on or after August 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 580.021, subdivision 2, is amended to read:


Subd. 2.

Requirement to provide notice of opportunity for counseling.

deleted text beginWhen
the written notice required under section 47.20, subdivision 8, is provided and
deleted text end Before
the notice of pendency under section 580.032, subdivision 3, new text beginor the lis pendens for a
foreclosure under chapter 581
new text end is deleted text beginfileddeleted text endnew text begin recordednew text end, a party foreclosing deleted text beginondeleted text end a mortgage must
provide to the mortgagor information contained in a form prescribed in section 580.022,
subdivision 1
, that:

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

(2) deleted text beginnotice thatdeleted text end the party will transmit the homeowner's name, address, and telephone
number to an approved foreclosure prevention agency.

deleted text begin Nothing in this subdivision prohibitsdeleted text end The notices required by this subdivision deleted text beginfrom
being
deleted text end new text beginmay be new text endprovided concurrently with deleted text beginthedeleted text end new text begina new text endwritten notice deleted text beginrequired under section
47.20, subdivision 8
deleted text endnew text begin of defaultnew text end.

For the purposes of this section, an "authorized foreclosure prevention counseling
agency" new text beginor "counseling agency"new text end is a new text begingovernment agency or a new text end nonprofit agency deleted text beginapproveddeleted text end
new text begin funded, all or in part, for foreclosure prevention services,new text end by the Minnesota Housing
Finance Agency or the United States Department of Housing and Urban Developmentnew text begin, or
otherwise approved by the United States Department of Housing and Urban Development
new text endto provide foreclosure prevention counseling services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 or the lis pendens for a foreclosure under chapter
581 is recorded on or after August 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2008, section 580.025, is amended to read:


580.025 FORECLOSURE DATA.

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.
new text end

new text begin Subd. 2. new text end

new text begin Data required. new text end

The notice of pendency required by section 580.032,
subdivision 3
; the notice of sale required by section 580.04; and the certificate of sale
required by section 580.12 shall include the following information to the best of the
knowledge of the party foreclosing the mortgage:

(1) the physical street address, city, and zip code of the mortgaged premises;

(2) the name of the transaction agent, residential mortgage servicer, and the lender
or broker, as defined in section 58.02, if the person holding the mortgage is a transaction
agent as defined in section 58.02, subdivision 30, or the name of the residential mortgage
servicer and the lender or broker, as defined in section 58.02, if the person holding the
mortgage is not a transaction agent as defined in section 58.02, subdivision 30;

(3) the tax parcel identification number of the mortgaged premises;

(4) if stated on the mortgage, the transaction agent's mortgage identification number;
and

(5) if stated on the mortgage, the name of the new text beginresidential new text endmortgage originator as
defined in section 58.02.

No liability shall accrue to the party foreclosing the mortgage or the party's attorney
for de minimis, good faith, or commercially reasonable errors in this information. The
omission of all or some of the information required by this section from the notice shall
not invalidate the foreclosure of the mortgage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 is recorded on or after August 1, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, section 580.04, is amended to read:


580.04 REQUISITES OF NOTICE.

new text begin (a) new text endEach notice shall specify:

(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;

(5) the time and place of sale;new text begin and
new text end

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's
personal representatives or assignsdeleted text begin; anddeleted text endnew text begin.
new text end

new text begin (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.
new text end

deleted text begin (7)deleted text end new text begin(c) new text endIf the party foreclosing the mortgage desires to preserve the right to reduce the
redemption period under section 582.032 after the first publication of the notice, the notice
must also state in capital letters: "THE TIME ALLOWED BY LAW FOR REDEMPTION
BY THE MORTGAGOR, THE MORTGAGOR'S PERSONAL REPRESENTATIVES
OR ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A JUDICIAL ORDER IS
ENTERED UNDER MINNESOTA STATUTES, SECTION 582.032, DETERMINING,
AMONG OTHER THINGS, THAT THE MORTGAGED PREMISES ARE IMPROVED
WITH A RESIDENTIAL DWELLING OF LESS THAN FIVE UNITS, ARE NOT
PROPERTY USED IN AGRICULTURAL PRODUCTION, AND ARE ABANDONED."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 is recorded on or after August 1, 2009.
new text end

Sec. 7.

Minnesota Statutes 2008, section 580.041, subdivision 1a, is amended to read:


Subd. 1a.

Applicability.

This section applies to foreclosure of mortgages new text beginby
advertisement
new text endunder this chapter new text beginand foreclosure of mortgages by action under chapter
581
new text endon property consisting of one to four family dwelling units, one of which the owner
occupies as the owner's principal place of residency deleted text beginon the date of service of the notice of
sale on the owner
deleted text endnew text begin when the notice of pendency under section 580.032 or the lis pendens
for a foreclosure under chapter 581 is recorded
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 or the lis pendens for a foreclosure under chapter
581 is recorded on or after August 1, 2009.
new text end

Sec. 8.

Minnesota Statutes 2008, section 580.042, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

This section applies to foreclosure of mortgages new text beginby
advertisement
new text endunder this chapternew text begin and foreclosure of mortgages by action under chapter
581 on property consisting of one to four family dwelling units, one or more of which
are occupied by a tenant as a residence
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures in which the notice
of pendency under section 580.032 or the lis pendens for a foreclosure under chapter
581 is recorded on or after August 1, 2009.
new text end

Sec. 9.

Minnesota Statutes 2008, section 580.07, is amended to read:


580.07 POSTPONEMENT.

new text begin (a) new text endThe sale may be postponed, from time to time, by the party conducting the
foreclosuredeleted text begin,deleted text endnew text begin. The party requesting the postponement must, at the party's expense:new text end

deleted text begin by insertingdeleted text end new text begin(1) publish, only once, new text enda notice of the postponementnew text begin and the rescheduled
date of the sale, if known
new text end, as soon as practicable, in the newspaper in which the deleted text beginoriginal
advertisement
deleted text end new text beginnotice under section 580.03 new text endwas publisheddeleted text begin, at the expense of the party
requesting the postponement. The notice shall be published only once.
deleted text endnew text begin; andnew text end

new text begin (2) send by first class mail to the occupant, postmarked within three business days of
the postponed sale, notice:
new text end

new text begin (i) of the postponement; and
new text end

new text begin (ii) if known, the rescheduled date of the sale and the date on or before which the
mortgagor must vacate the property if the sheriff's sale is not further postponed, the
mortgage is not reinstated under section 580.30, the property is not redeemed under
section 580.23, or the redemption period is not reduced under section 582.032. The notice
must state that the time to vacate the property is 11:59 p.m. on the specified date.
new text end

new text begin (b) If the rescheduled date of the sale is not known at the time of the initial
publication and notice to the occupant of postponement, the foreclosing party must, at
its expense if and when a new date of sale is scheduled:
new text end

new text begin (1) publish, only once, notice of the rescheduled date of the sale, as soon as
practicable, in the newspaper in which the notice under section 580.03 and the notice of
postponement under paragraph (a) was published; and
new text end

new text begin (2) send by first class mail to the occupant, postmarked within ten days of the
rescheduled sale, notice:
new text end

new text begin (i) of the date of the rescheduled sale; and
new text end

new text begin (ii) 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices of postponement
published or served on or after August 1, 2009.
new text end

Sec. 10.

Minnesota Statutes 2008, section 580.15, is amended to read:


580.15 PERPETUATING EVIDENCE OF SALE.

Any party desiring to perpetuate the evidence of any sale made in pursuance of
this chapter may procure:

(1) an affidavit of the publication of the notice of sale and of any notice of
postponement to be made by the printer of the newspaper in which the same was inserted
or by some person in the printer's employ knowing the facts;

(2) an affidavit or return of service of such notice upon the occupant of the mortgaged
premises to be made by the officer or person making such service or, in case the premises
were vacant or unoccupied at the time the service must be made, an affidavit or return
showing that fact, to be made by the officer or person attempting to make such service;

(3) an affidavit by the person foreclosing the mortgage, or that person's attorney, or
someone knowing the facts, setting forth the facts relating to the military service status of
the owner of the mortgaged premises at the time of sale;

(4) an affidavit by the person foreclosing the mortgage, or that person's attorney,
or someone having knowledge of the facts, setting forth the fact of service of notice of
sale upon the secretary of the Treasury of the United States or the secretary's delegate in
accordance with the provisions of Section 7425 of the Internal Revenue Code of 1954
as amended by Section 109 of the Federal Tax Lien Act of 1966, and also setting forth
the fact of service of notice of sale upon the commissioner of revenue of the state of
Minnesota in accordance with the provisions of section 270C.63, subdivision 11. Any
such affidavit recorded prior to May 16, 1967 shall be effective as prima facie evidence of
the facts therein contained as though recorded subsequent to May 16, 1967;

(5) an affidavit by the person foreclosing the mortgage, or that person's attorney, or
someone having knowledge of the facts, setting forth the names of the persons to whom a
notice of sale was mailed as provided by section 580.032new text begin; and
new text end

new text begin (6) one or more affidavits by the person foreclosing the mortgage, or that person's
attorney or a person having knowledge of the facts, stating:
new text end

new text begin (i) whether section 580.021, 580.04, 580.041, 580.042, 582.039, 582.041, or 582.042
apply to the foreclosure proceedings; and
new text end

new text begin (ii) if any or all of those sections apply, that all notices required under those sections
have been provided
new text end.

Such affidavits and returns shall be recorded by the county recorder and they and the
records thereof, and certified copies of such records, shall be prima facie evidence of the
facts therein contained.

The affidavit provided for in clause (3) hereof may be made and recorded for the
purpose of complying with the provisions of the Servicemembers Civil Relief Act, and
may be made and recorded at any time subsequent to the date of the mortgage foreclosure
sale.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales conducted before, on, or
after August 1, 2009.
new text end