language to be deleted (2) new language
relating to mortgage foreclosures; amending the definition of a small servicer; clarifying the Foreclosure Curative Act;
amending Minnesota Statutes 2013 Supplement, sections 582.043, subdivision 1; 582.27, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
(a) For purposes of this section, the terms defined in this subdivision have the meanings given them.
(b) "Foreclosure sale date" means either:
(2) the date to which the foreclosure sale is postponed by the borrower under section 580.07, subdivision 2,
whichever is later.
(c) "Loss mitigation option" means a temporary or permanent loan modification, a forbearance agreement, a repayment agreement, a principal reduction, capitalizing arrears, or any other relief intended to allow a mortgagor to retain ownership of the property.
(d) "Mortgagor" means a person who is liable on the promissory note secured by the mortgage, except that the mortgagor does not include a person who has surrendered the mortgaged property, as evidenced by either a letter or other written notice confirming the surrender or by delivery of the keys to the property to the servicer or authorized agent.
(e) "Servicer" means a residential mortgage servicer as defined in section 58.02, subdivision 20.
(f) "Small servicer" means a servicer that is either:
(1) a small servicer, as defined in Code of Federal Regulations, title 12, section 1026.41, paragraph (e), clause (4); or
(2) a Housing Finance Agency, as defined in Code of Federal Regulations, title 24, section 266.5.
Until August 1, 2014, "small servicer" also means a servicer that has conducted 125 or fewer foreclosure sales during the preceding 12 months.
Upon expiration of the periods specified in this section, the provisions of section 582.25 apply to a mortgage foreclosure sale subject to this section:
(1) as to all of the provisions of section 582.25, except clauses (2) and (23), one year after the last day of the redemption period of the mortgagor, the mortgagor's personal representatives or assigns;
(2) as to clause (2), ten years after the date of the foreclosure sale; and
Presented to the governor April 30, 2014
Signed by the governor May 1, 2014, 9:38 a.m.