2006 Minnesota Statutes

582.041 FORECLOSURE OF MORTGAGE THAT INCLUDES HOMESTEAD.
    Subdivision 1. Notification of homestead designation. If a mortgage on real property is
foreclosed and the property contains a portion of a homestead, the person in possession of the
real property must be notified by the foreclosing mortgagee that the homestead may be sold and
redeemed separately from the remaining property. The notice in subdivision 2 must be served with
the notice of foreclosure that is served on the person in possession of the real property with the
requirements in section 580.03 or for a foreclosure by action under chapter 581, in the summons
and complaint served on the person in possession of the real property.
    Subd. 2. Homestead designation notice. (a) The following notice must be served with the
foreclosure notice of property containing a homestead that is served on the person in possession
of the real property under section 580.03. The notice is not to be published. The notice must be in
10-point capitalized letters.
"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU MAY
DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF THE
PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY MUST
CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO THAT IT
DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING PROPERTY.
YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY, THE
SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE LEGAL DESCRIPTION
OF THE HOMESTEAD YOU HAVE DESIGNATED BY TEN BUSINESS DAYS BEFORE
THE DATE THE PROPERTY IS TO BE SOLD."
(b) The following notice must be served with the summons and complaint in an action to
foreclose a mortgage of property containing a homestead under chapter 581. The notice must
be in 10-point capitalized letters and is not to be published with the summons if the summons is
published.
"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU MAY
DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF THE
PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY MUST
CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO THAT IT
DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING PROPERTY.
YOU MUST PROVIDE THE COURT WITH A LEGAL DESCRIPTION OF THE
HOMESTEAD YOU HAVE DESIGNATED."
    Subd. 3. Designation of homestead property. The person who is homesteading the property
must designate a legal description of the homestead property to be sold separately. The homestead
property designated may include any amount of the property. The designation must conform to
local zoning, include the dwelling occupied by the person homesteading the property, and be
compact so that it does not unreasonably affect the value of the remaining property. The person
homesteading the property must serve a copy of the designation on the foreclosing mortgagee,
the sheriff, and the county recorder or registrar of titles by ten business days before the sale is
scheduled, or for a foreclosure by action under chapter 581, a copy of the designation must be
provided to the court.
    Subd. 4. Sale of property. If the sheriff receives a homestead property designation under
subdivision 3, or is ordered by the court, the sheriff must offer and sell the designated homestead
property, and the remaining property, separately.
    Subd. 5. Redemption. A party who has a right of redemption may redeem the designated
homestead, the remaining property, or the entire property including the homestead. The period of
redemption is the period for the entire property including the designated homestead.
History: 1986 c 398 art 2 s 3; 1Sp1986 c 3 art 2 s 44; 1987 c 396 art 4 s 1-4