HF 3015

as introduced - 87th Legislature (2011 - 2012) Posted on 04/23/2012 10:56am

A bill for an act
relating to real estate mortgage foreclosures; providing that future mortgage
foreclosures by advertisement will not be effective; providing that a deficiency
judgment will no longer be available on foreclosures of homestead property by
action or advertisement; amending Minnesota Statutes 2010, sections 580.01;
582.30, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 580.01, is amended to read:

580.01 LIMITATION.

new text begin (a) new text end Subject to the provisions of section 541.03, any mortgage of real estate
containing a power of sale, upon default being made in any condition thereof, may
be foreclosed by advertisement.

new text begin (b) Paragraph (a) does not apply to a mortgage foreclosure unless the first published
notice required under section 580.03 was published prior to April 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2010, section 582.30, subdivision 1, is amended to read:

Subdivision 1.

Deficiency allowed.

(a) Except as provided in this section, a person
holding a mortgage may obtain a deficiency judgment against the mortgagor if the amount
a person holding a mortgage receives from a foreclosure sale is less than:

(1) the amount remaining unpaid on the mortgage under chapter 580; or

(2) the amount of the judgment entered under chapter 581.

(b) Except as provided in subdivisions 3 and 5, the judgment may not be for more
than the difference between the amount received from the foreclosure sale less expenses
and costs and:

(1) for a foreclosure by advertisement, the total amount that attaches to the sale
proceeds under chapter 580; or

(2) for a foreclosure by action, the amount of the judgment entered under chapter
581.

(c) Subdivisions 3 to 9 do not apply to mortgages entered or amended on or after
May 22, 1999, if the mortgaged property is used in agricultural production only by a
tenant who is not the mortgagor.

new text begin (d) For foreclosures by advertisement or by action not completed prior to April 1,
2012, a deficiency judgment may not be obtained against the mortgagor if the foreclosed
property is the homestead of the mortgagor.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective April 1, 2012.
new text end