Bill Text: MN HF2925 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Foreclosure prohibited if the lender has not acted on a loan modification request.
Sponsorship: Partisan Bill (Democrat 30)
Status: (Introduced - Dead) 2012-03-20 - Author added Champion [HF2925 Detail]
Download: Minnesota-2011-HF2925-Introduced.html
1.2relating to real estate; prohibiting foreclosure if the lender has not acted on a loan
1.3modification request;amending Minnesota Statutes 2010, section 580.02.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 580.02, is amended to read:
1.6580.02 REQUISITES FOR FORECLOSURE.
1.7 To entitle any party to make such foreclosure, it is requisite:
1.8 (1) that some default in a condition of such mortgage has occurred, by which the
1.9power to sell has become operative;
1.10 (2) that no action or proceeding has been instituted at law to recover the debt then
1.11remaining secured by such mortgage, or any part thereof, or, if the action or proceeding
1.12has been instituted, that the same has been discontinued, or that an execution upon the
1.13judgment rendered therein has been returned unsatisfied, in whole or in part;
1.14 (3) that the mortgage has been recorded and, if it has been assigned, that all
1.15assignments thereof have been recorded; provided, that, if the mortgage is upon registered
1.16land, it shall be sufficient if the mortgage and all assignments thereof have been duly
1.17registered;and
1.18 (4) before the notice of pendency as required under section580.032 is recorded, the
1.19party has complied with section580.021
.; and
1.20(5) that if the mortgagor has requested a loan modification of the mortgage loan on
1.21the mortgagor's homestead, the mortgagee has rejected the request by notice in writing
1.22to the mortgagor. This requirement does not apply to a mortgagor's request for a loan
1.23modification made sooner than 60 days after a previous request by the mortgagor for
1.24a loan modification on the same mortgage loan was rejected by the mortgagee. The
2.1mortgagee cannot begin or continue a foreclosure if a loan modification request has been
2.2submitted, is under consideration, is pending, or if there has been a loan modification and
2.3the mortgagor is not in default on the modified loan.
2.4EFFECTIVE DATE.This section is effective for foreclosures commenced on or
2.5after June 1, 2012.
1.3modification request;amending Minnesota Statutes 2010, section 580.02.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 580.02, is amended to read:
1.6580.02 REQUISITES FOR FORECLOSURE.
1.7 To entitle any party to make such foreclosure, it is requisite:
1.8 (1) that some default in a condition of such mortgage has occurred, by which the
1.9power to sell has become operative;
1.10 (2) that no action or proceeding has been instituted at law to recover the debt then
1.11remaining secured by such mortgage, or any part thereof, or, if the action or proceeding
1.12has been instituted, that the same has been discontinued, or that an execution upon the
1.13judgment rendered therein has been returned unsatisfied, in whole or in part;
1.14 (3) that the mortgage has been recorded and, if it has been assigned, that all
1.15assignments thereof have been recorded; provided, that, if the mortgage is upon registered
1.16land, it shall be sufficient if the mortgage and all assignments thereof have been duly
1.17registered;
1.18 (4) before the notice of pendency as required under section
1.19party has complied with section
1.20(5) that if the mortgagor has requested a loan modification of the mortgage loan on
1.21the mortgagor's homestead, the mortgagee has rejected the request by notice in writing
1.22to the mortgagor. This requirement does not apply to a mortgagor's request for a loan
1.23modification made sooner than 60 days after a previous request by the mortgagor for
1.24a loan modification on the same mortgage loan was rejected by the mortgagee. The
2.1mortgagee cannot begin or continue a foreclosure if a loan modification request has been
2.2submitted, is under consideration, is pending, or if there has been a loan modification and
2.3the mortgagor is not in default on the modified loan.
2.4EFFECTIVE DATE.This section is effective for foreclosures commenced on or
2.5after June 1, 2012.
