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HF 22

as introduced - 88th Legislature (2013 - 2014) Posted on 01/10/2013 12:00pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
 relating to real estate; foreclosure forbearance for unemployed long-term
homeowners; proposing coding for new law in Minnesota Statutes, chapter 580.

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

Section 1.

new text begin [580.0211] FORECLOSURE FORBEARANCE FOR FINANCIAL
HARDSHIP OF UNEMPLOYED LONG-TERM HOMEOWNERS.
 new text end

new text begin (a) Upon request and proof of eligibility provided by the mortgagor, a mortgagee
shall defer commencement or continuation of a mortgage foreclosure for at least 12
months for mortgagors: (1) who have lived in their current home that is subject to the
mortgage for at least ten years; and (2) at least one of whom is unemployed and eligible
for unemployment compensation or whose eligibility for it has expired.
 new text end

new text begin (b) Mortgagors who qualify under paragraph (a) and have lived in their current home
that is subject to the mortgage for at least 20 years may request, and the mortgagee must
provide, a deferral of commencement or continuation of foreclosure of at least 24 months.
 new text end

new text begin (c) A mortgagor may request and receive a deferral under paragraph (a) or (b) at
any time before or during a foreclosure.
 new text end

new text begin (d) Interest may continue to accrue on the loan, unless otherwise agreed between
the parties.
 new text end

new text begin (e) The mortgagee may at any time during the deferral period request the district
court in the county in which the property is located to determine whether the mortgagor
has income sufficient to make partial monthly payments on the mortgage loan, not
to exceed 30 percent of the mortgagor's income, and the court may then condition
continuation of the deferral upon reasonable compliance with the payment obligation. The
mortgagee may make no more than one such request within any 12-month period.
 new text end

new text begin (f) The mortgagee must notify in writing, as part of the notice of default, any
potentially eligible mortgagor of the mortgagor's rights under this section.
 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