HF 3011

as introduced - 87th Legislature (2011 - 2012) Posted on 04/23/2012 10:55am

A bill for an act
relating to real estate; requiring that mortgage lenders who have foreclosed on
real estate within a city must deed the property to the city in which it is located
when the foreclosure has been completed; permitting the city to charge the lender
for any costs of repair or demolition; requiring the lender to pay those charges;
proposing coding for new law in Minnesota Statutes, chapter 582.

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

Section 1.

new text begin [582.33] FORECLOSED REAL PROPERTY; DONATION TO CITY
REQUIRED.
new text end

new text begin At the conclusion of a foreclosure of a mortgage on residential property located in a
city in this state, the lender shall have four months within which to sell the property in
a bona fide sale to a person or entity that is unrelated to the lender. If the lender fails to
complete such a sale within that time period, the lender shall deed the property to the city
in which the property is located. The city must accept the deed and may charge the lender
for costs of any demolition and repairs reasonably necessary to prepare the property for
sale. The city may retain any net proceeds from the sale for general city purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for foreclosures concluded on or
after August 1, 2012.
new text end