Bill Text: MN HF27 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Mortgage lenders who have foreclosed on real estate within a city required to deed the property to city in which it is located upon completion of foreclosure, city permitted to charge lender for repair or demolition costs, and lender required to pay for charges.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-01-24 - Author stricken Slocum [HF27 Detail]
Download: Minnesota-2013-HF27-Introduced.html
1.2relating to real estate; requiring that mortgage lenders who have foreclosed on
1.3real estate within a city must deed the property to the city in which it is located
1.4when the foreclosure has been completed; permitting the city to charge the lender
1.5for any costs of repair or demolition; requiring the lender to pay those charges;
1.6proposing coding for new law in Minnesota Statutes, chapter 582.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [582.33] FORECLOSED REAL PROPERTY; DONATION TO CITY
1.9REQUIRED.
1.10At the conclusion of a foreclosure of a mortgage on residential property located in a
1.11city in this state, the lender shall have four months within which to sell the property in
1.12a bona fide sale to a person or entity that is unrelated to the lender. If the lender fails to
1.13complete such a sale within that time period, the lender shall deed the property to the city
1.14in which the property is located. The city must accept the deed and may charge the lender
1.15for costs of any demolition and repairs reasonably necessary to prepare the property for
1.16sale. The city may retain any net proceeds from the sale for general city purposes.
1.17EFFECTIVE DATE.This section is effective for foreclosures concluded on or
1.18after August 1, 2013.
1.3real estate within a city must deed the property to the city in which it is located
1.4when the foreclosure has been completed; permitting the city to charge the lender
1.5for any costs of repair or demolition; requiring the lender to pay those charges;
1.6proposing coding for new law in Minnesota Statutes, chapter 582.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [582.33] FORECLOSED REAL PROPERTY; DONATION TO CITY
1.9REQUIRED.
1.10At the conclusion of a foreclosure of a mortgage on residential property located in a
1.11city in this state, the lender shall have four months within which to sell the property in
1.12a bona fide sale to a person or entity that is unrelated to the lender. If the lender fails to
1.13complete such a sale within that time period, the lender shall deed the property to the city
1.14in which the property is located. The city must accept the deed and may charge the lender
1.15for costs of any demolition and repairs reasonably necessary to prepare the property for
1.16sale. The city may retain any net proceeds from the sale for general city purposes.
1.17EFFECTIVE DATE.This section is effective for foreclosures concluded on or
1.18after August 1, 2013.
