Bill Text: MN HF21 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Mortgage foreclosure calculations and reduction in the mortgage loan balance required.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-01-14 - Author added Kahn [HF21 Detail]
Download: Minnesota-2013-HF21-Introduced.html
1.2relating to mortgage foreclosures; requiring certain calculations; requiring
1.3reduction in the mortgage loan balance under certain circumstances;proposing
1.4coding for new law in Minnesota Statutes, chapter 582.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [582.33] REDUCTION OF MORTGAGE AMOUNT TO REFLECT
1.7NET BENEFIT OF FORECLOSURE TO LENDER.
1.8(a) Before beginning a mortgage foreclosure, a mortgagee or mortgage servicer shall
1.9determine the exact amount or reasonable estimates of the following dollar amounts:
1.10(1) the amount owing on the mortgage loan;
1.11(2) all costs of completing a foreclosure and selling the property, including costs
1.12reasonably expected to be incurred during the redemption period, costs of maintaining the
1.13property and preparing it for sale, payment of delinquent real estate taxes, and the real
1.14estate commissions to be incurred in selling the property;
1.15(3) the market value of the property at the end of the redemption period; and
1.16(4) the expected value of foreclosure to the lender, consisting of clause (3) minus
1.17clause (2).
1.18(b) Prior to beginning a foreclosure on the property referenced in paragraph (a),
1.19the mortgagee shall offer in writing to the owner the opportunity to replace the existing
1.20mortgage loan with a new mortgage loan in an amount equal to the amount determined
1.21under paragraph (a), clause (4), with a rate of interest at the current market rate but no
1.22higher than the existing mortgage loan and with a 30-year amortization period unless the
1.23borrower requests a shorter amortization.
2.1(c) After receiving the offer required under paragraph (b), the owner shall have 60
2.2days to decide whether to accept the offer. The mortgagee and owner may agree on a
2.3different arrangement. The owner may also obtain a loan from another source to pay the
2.4lender the amount specified in this paragraph.
2.5EFFECTIVE DATE.This section is effective for mortgage foreclosures
2.6commenced on or after August 1, 2013.
1.3reduction in the mortgage loan balance under certain circumstances;proposing
1.4coding for new law in Minnesota Statutes, chapter 582.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [582.33] REDUCTION OF MORTGAGE AMOUNT TO REFLECT
1.7NET BENEFIT OF FORECLOSURE TO LENDER.
1.8(a) Before beginning a mortgage foreclosure, a mortgagee or mortgage servicer shall
1.9determine the exact amount or reasonable estimates of the following dollar amounts:
1.10(1) the amount owing on the mortgage loan;
1.11(2) all costs of completing a foreclosure and selling the property, including costs
1.12reasonably expected to be incurred during the redemption period, costs of maintaining the
1.13property and preparing it for sale, payment of delinquent real estate taxes, and the real
1.14estate commissions to be incurred in selling the property;
1.15(3) the market value of the property at the end of the redemption period; and
1.16(4) the expected value of foreclosure to the lender, consisting of clause (3) minus
1.17clause (2).
1.18(b) Prior to beginning a foreclosure on the property referenced in paragraph (a),
1.19the mortgagee shall offer in writing to the owner the opportunity to replace the existing
1.20mortgage loan with a new mortgage loan in an amount equal to the amount determined
1.21under paragraph (a), clause (4), with a rate of interest at the current market rate but no
1.22higher than the existing mortgage loan and with a 30-year amortization period unless the
1.23borrower requests a shorter amortization.
2.1(c) After receiving the offer required under paragraph (b), the owner shall have 60
2.2days to decide whether to accept the offer. The mortgagee and owner may agree on a
2.3different arrangement. The owner may also obtain a loan from another source to pay the
2.4lender the amount specified in this paragraph.
2.5EFFECTIVE DATE.This section is effective for mortgage foreclosures
2.6commenced on or after August 1, 2013.
