Bill Text: MN HF25 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Foreclosed homeowners provided with the right to stay in the home for a longer period of time.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-01-14 - Author added Kahn [HF25 Detail]
Download: Minnesota-2013-HF25-Introduced.html
1.2relating to mortgage foreclosures; providing foreclosed homeowners with the
1.3right to stay in the home for a longer period of time;amending Minnesota
1.4Statutes 2012, section 580.041, subdivision 2a; proposing coding for new law in
1.5Minnesota Statutes, chapter 580.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 580.041, subdivision 2a, is amended to read:
1.8 Subd. 2a. Content of notice of redemption rights. The notice of redemption rights
1.9required by this section must appear substantially as follows:
1.10"What Happens After the Foreclosure Sale
1.11After the sheriff's sale, you have the right to "redeem." Redeem means that you pay the
1.12amount bid for your house at the sheriff's sale, plus interest and costs, to keep your house.
1.13You can keep living in your home for a period of time after the foreclosure sale. This is
1.14called a "redemption period." The redemption period is [insert number of months] months
1.15after the sheriff's sale.
1.16At After the end of the redemption period, if you do not redeem or sell, you will have
1.17to leave your home. You will have the right to remain in your home until two weeks before
1.18the buyer of the home moves into the home. If you do not leave, the person or company that
1.19bid on your home at the sheriff's sale has the right to file an eviction against you in court.
1.20Be Careful of Foreclosure Scams
1.21Be careful! After the foreclosure sale, people may approach you to buy your house
1.22or ask you to transfer your house to them for little or no money.
2.1Before you give up the rights to your house or sign any documents (including a
2.2deed), be sure you know how much the house sold for at the sheriff's sale and decide if
2.3you can save the house by paying the amount of the bid, plus interest and costs.
2.4How to Find Out How Much Your House Sold For at the Foreclosure Sale
2.5The amount you need to pay to redeem your house may be less than the amount you
2.6owed on the mortgage before the sale. You can learn what this amount is (and who the
2.7winning bidder at the sale was) by attending the sheriff's sale or by contacting the sheriff's
2.8office after the sale.
2.9You Can Also Sell Your House
2.10During the redemption period, if you sell your home, you must sell it for enough
2.11to pay off the winning bidder from the sheriff's sale and pay interest, fees, and other
2.12claims against the property. If there is any money left from the sale of the house after all
2.13these debts are paid, you can keep the money. You can also enter into a "short sale." A
2.14short sale is an agreement in which the lender agrees to accept less than the full amount
2.15you owe on the mortgage.
2.16Get More Information and Advice
2.17For more information and advice, contact an attorney or a mortgage
2.18foreclosure prevention counselor. You can find a mortgage foreclosure
2.19prevention counselor by contacting the Minnesota Home Ownership Center
2.20at 651-659-9336 or 866-462-6466 or www.hocmn.org or contact the United
2.21States Department of Housing and Urban Development at 1-800-569-4287 or
2.22www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search=MN#searchArea to get
2.23the phone number and location of the nearest certified counseling organization."
2.24 Sec. 2. [580.061] LIMITED RIGHT TO REMAIN IN HOME AFTER
2.25REDEMPTION PERIOD.
2.26After the end of the redemption period of residential real property, the former owner
2.27may retain possession and continue to occupy the property until two weeks prior to the day
2.28a new owner moves into the property. For purposes of this section, "new owner" means an
2.29individual who, or an entity that, purchased the property from the former owner's lender or
2.30from an intermediary owner. "New owner" does not include the former lender.
2.31 Sec. 3. EFFECTIVE DATE.
2.32Sections 1 and 2 are effective for foreclosures commenced on or after August 1, 2013.
1.3right to stay in the home for a longer period of time;amending Minnesota
1.4Statutes 2012, section 580.041, subdivision 2a; proposing coding for new law in
1.5Minnesota Statutes, chapter 580.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 580.041, subdivision 2a, is amended to read:
1.8 Subd. 2a. Content of notice of redemption rights. The notice of redemption rights
1.9required by this section must appear substantially as follows:
1.10"What Happens After the Foreclosure Sale
1.11After the sheriff's sale, you have the right to "redeem." Redeem means that you pay the
1.12amount bid for your house at the sheriff's sale, plus interest and costs, to keep your house.
1.13You can keep living in your home for a period of time after the foreclosure sale. This is
1.14called a "redemption period." The redemption period is [insert number of months] months
1.15after the sheriff's sale.
1.16
1.17to leave your home. You will have the right to remain in your home until two weeks before
1.18the buyer of the home moves into the home. If you do not leave, the person or company that
1.19bid on your home at the sheriff's sale has the right to file an eviction against you in court.
1.20Be Careful of Foreclosure Scams
1.21Be careful! After the foreclosure sale, people may approach you to buy your house
1.22or ask you to transfer your house to them for little or no money.
2.1Before you give up the rights to your house or sign any documents (including a
2.2deed), be sure you know how much the house sold for at the sheriff's sale and decide if
2.3you can save the house by paying the amount of the bid, plus interest and costs.
2.4How to Find Out How Much Your House Sold For at the Foreclosure Sale
2.5The amount you need to pay to redeem your house may be less than the amount you
2.6owed on the mortgage before the sale. You can learn what this amount is (and who the
2.7winning bidder at the sale was) by attending the sheriff's sale or by contacting the sheriff's
2.8office after the sale.
2.9You Can Also Sell Your House
2.10During the redemption period, if you sell your home, you must sell it for enough
2.11to pay off the winning bidder from the sheriff's sale and pay interest, fees, and other
2.12claims against the property. If there is any money left from the sale of the house after all
2.13these debts are paid, you can keep the money. You can also enter into a "short sale." A
2.14short sale is an agreement in which the lender agrees to accept less than the full amount
2.15you owe on the mortgage.
2.16Get More Information and Advice
2.17For more information and advice, contact an attorney or a mortgage
2.18foreclosure prevention counselor. You can find a mortgage foreclosure
2.19prevention counselor by contacting the Minnesota Home Ownership Center
2.20at 651-659-9336 or 866-462-6466 or www.hocmn.org or contact the United
2.21States Department of Housing and Urban Development at 1-800-569-4287 or
2.22www.hud.gov
2.23the phone number and location of the nearest certified counseling organization."
2.24 Sec. 2. [580.061] LIMITED RIGHT TO REMAIN IN HOME AFTER
2.25REDEMPTION PERIOD.
2.26After the end of the redemption period of residential real property, the former owner
2.27may retain possession and continue to occupy the property until two weeks prior to the day
2.28a new owner moves into the property. For purposes of this section, "new owner" means an
2.29individual who, or an entity that, purchased the property from the former owner's lender or
2.30from an intermediary owner. "New owner" does not include the former lender.
2.31 Sec. 3. EFFECTIVE DATE.
2.32Sections 1 and 2 are effective for foreclosures commenced on or after August 1, 2013.
