Bill Text: MN HF3027 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Foreclosed homeowners' right to stay in the home for a longer period of time provided.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-24 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF3027 Detail]
Download: Minnesota-2011-HF3027-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 2010, section 580.041, subdivision 2a; Minnesota Statutes 2011
1.5Supplement, section 580.06, subdivision 2; proposing coding for new law in
1.6Minnesota Statutes, chapter 580.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 580.041, subdivision 2a, is amended to
1.9read:
1.10 Subd. 2a. Content of notice of redemption rights. The notice of redemption rights
1.11required by this section must appear substantially as follows:
1.12"What Happens After the Foreclosure Sale
1.13After the sheriff's sale, you have the right to "redeem." Redeem means that you pay the
1.14amount bid for your house at the sheriff's sale, plus interest and costs, to keep your house.
1.15You can keep living in your home for a period of time after the foreclosure sale. This is
1.16called a "redemption period." The redemption period is [insert number of months] months
1.17after the sheriff's sale.
1.18At After the end of the redemption period, if you do not redeem or sell, you will
1.19have to leave your home. You will have the right to remain in your home until two weeks
1.20before the buyer of the home moves into the home. If you do not leave, the person
1.21or company that bid on your home at the sheriff's sale has the right to file an eviction
1.22against you in court.
1.23Be Careful of Foreclosure Scams
1.24Be careful! After the foreclosure sale, people may approach you to buy your house
1.25or 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. Minnesota Statutes 2011 Supplement, section 580.06, subdivision 2, is
2.25amended to read:
2.26 Subd. 2. Notice of results of sale required; contents. (a) Except as provided in
2.27paragraph (c), a person attempting to acquire fee title to the mortgagor's property directly
2.28from the mortgagor following the sheriff's sale and prior to the end of the redemption
2.29period must provide to the mortgagor, by personal delivery three days prior to entering into
2.30an agreement with the mortgagor to acquire title, notice of the results of the foreclosure
2.31as provided under paragraph (b).
2.32(b) The notice required under paragraph (a) must contain the following information:
2.33(1) the date the sale occurred;
2.34(2) the identity of the purchaser and any assignees of the purchaser;
2.35(3) the sheriff's sale price; and
3.1(4) the following statement: "There are very important things you need to know now
3.2that your house has been auctioned at the sheriff's sale:
3.3(i) you have (insert the number of months) to "redeem," which means to pay the
3.4winning bidder the sale price listed above (plus interest and costs) and keep your house;
3.5(ii) whether you can pay off the amount or not, YOU DO NOT HAVE TO MOVE
3.6RIGHT AWAY. YOU CAN KEEP LIVING IN YOUR HOME until the end of this
3.7redemption period and for an additional period of two weeks before a buyer of the home
3.8moves into the home;
3.9(iii) read all notices and documents related to the foreclosure of your home carefully!
3.10THE AMOUNT YOU NEED TO PAY THE WINNING BIDDER TO REDEEM YOUR
3.11HOUSE (THE SHERIFF'S SALE PRICE LISTED ABOVE, PLUS INTEREST AND
3.12COSTS) MAY BE LESS THAN THE AMOUNT YOU OWED ON YOUR MORTGAGE
3.13BEFORE THE SHERIFF'S SALE; and
3.14(iv) you can also try to sell your home during this "redemption period." You must sell
3.15it for enough to pay off the winning bidder from the sheriff's sale and pay interest, fees, and
3.16other claims against the property. You can also enter into a "short sale." A short sale is an
3.17agreement in which the lender accepts less than the full amount you owe on the mortgage.
3.18If there is any money left from the sale of the house after all these debts are paid,
3.19you can keep the money.
3.20For more information and advice, contact an attorney or a mortgage foreclosure
3.21prevention counselor. You can find a mortgage foreclosure prevention counselor in
3.22your county by calling the Minnesota Home Ownership Center at 651-659-9336 or
3.23866-462-6466 or www.hocmn.org or contact the United States Department of Housing
3.24and Urban Development at 1-800-569-4287 or www.hud.gov."
3.25(c) This subdivision does not apply to:
3.26(1) a seller or buyer who has entered into a signed agency agreement, facilitator
3.27agreement, or other written agreement to buy or sell the mortgagor's property with a
3.28person licensed under chapter 82;
3.29(2) a buyer who offers to buy the mortgagor's property for a purchase price that
3.30meets or exceeds the amount required to be paid by the mortgagor to redeem the property,
3.31unless the buyer or the mortgagor enters into a short sale agreement with the holder of
3.32the sheriff's certificate in which the holder agrees to accept less than the full amount
3.33required to redeem;
3.34(3) a foreclosing lender acquiring the mortgagor's property by a deed in lieu of
3.35foreclosure;
4.1(4) a nonprofit lender holding a certificate of exemption from the Department of
4.2Commerce; or
4.3(5) the state or a local unit of government or an agent of the state or a local unit
4.4of government.
4.5 Sec. 3. [580.061] LIMITED RIGHT TO REMAIN IN HOME AFTER
4.6REDEMPTION PERIOD.
4.7After the end of the redemption period of residential real property, the former owner
4.8may retain possession and continue to occupy the property until two weeks prior to the day
4.9a new owner moves into the property. For purposes of this section, "new owner" means an
4.10individual who, or an entity that, purchased the property from the former owner's lender or
4.11from an intermediary owner. "New owner" does not include the former lender.
4.12 Sec. 4. EFFECTIVE DATE.
4.13Sections 1 to 3 are effective for foreclosures commenced on or after August 1, 2012.
1.3right to stay in the home for a longer period of time;amending Minnesota
1.4Statutes 2010, section 580.041, subdivision 2a; Minnesota Statutes 2011
1.5Supplement, section 580.06, subdivision 2; proposing coding for new law in
1.6Minnesota Statutes, chapter 580.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 580.041, subdivision 2a, is amended to
1.9read:
1.10 Subd. 2a. Content of notice of redemption rights. The notice of redemption rights
1.11required by this section must appear substantially as follows:
1.12"What Happens After the Foreclosure Sale
1.13After the sheriff's sale, you have the right to "redeem." Redeem means that you pay the
1.14amount bid for your house at the sheriff's sale, plus interest and costs, to keep your house.
1.15You can keep living in your home for a period of time after the foreclosure sale. This is
1.16called a "redemption period." The redemption period is [insert number of months] months
1.17after the sheriff's sale.
1.18
1.19have to leave your home. You will have the right to remain in your home until two weeks
1.20before the buyer of the home moves into the home. If you do not leave, the person
1.21or company that bid on your home at the sheriff's sale has the right to file an eviction
1.22against you in court.
1.23Be Careful of Foreclosure Scams
1.24Be careful! After the foreclosure sale, people may approach you to buy your house
1.25or 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. Minnesota Statutes 2011 Supplement, section 580.06, subdivision 2, is
2.25amended to read:
2.26 Subd. 2. Notice of results of sale required; contents. (a) Except as provided in
2.27paragraph (c), a person attempting to acquire fee title to the mortgagor's property directly
2.28from the mortgagor following the sheriff's sale and prior to the end of the redemption
2.29period must provide to the mortgagor, by personal delivery three days prior to entering into
2.30an agreement with the mortgagor to acquire title, notice of the results of the foreclosure
2.31as provided under paragraph (b).
2.32(b) The notice required under paragraph (a) must contain the following information:
2.33(1) the date the sale occurred;
2.34(2) the identity of the purchaser and any assignees of the purchaser;
2.35(3) the sheriff's sale price; and
3.1(4) the following statement: "There are very important things you need to know now
3.2that your house has been auctioned at the sheriff's sale:
3.3(i) you have (insert the number of months) to "redeem," which means to pay the
3.4winning bidder the sale price listed above (plus interest and costs) and keep your house;
3.5(ii) whether you can pay off the amount or not, YOU DO NOT HAVE TO MOVE
3.6RIGHT AWAY. YOU CAN KEEP LIVING IN YOUR HOME until the end of this
3.7redemption period and for an additional period of two weeks before a buyer of the home
3.8moves into the home;
3.9(iii) read all notices and documents related to the foreclosure of your home carefully!
3.10THE AMOUNT YOU NEED TO PAY THE WINNING BIDDER TO REDEEM YOUR
3.11HOUSE (THE SHERIFF'S SALE PRICE LISTED ABOVE, PLUS INTEREST AND
3.12COSTS) MAY BE LESS THAN THE AMOUNT YOU OWED ON YOUR MORTGAGE
3.13BEFORE THE SHERIFF'S SALE; and
3.14(iv) you can also try to sell your home during this "redemption period." You must sell
3.15it for enough to pay off the winning bidder from the sheriff's sale and pay interest, fees, and
3.16other claims against the property. You can also enter into a "short sale." A short sale is an
3.17agreement in which the lender accepts less than the full amount you owe on the mortgage.
3.18If there is any money left from the sale of the house after all these debts are paid,
3.19you can keep the money.
3.20For more information and advice, contact an attorney or a mortgage foreclosure
3.21prevention counselor. You can find a mortgage foreclosure prevention counselor in
3.22your county by calling the Minnesota Home Ownership Center at 651-659-9336 or
3.23866-462-6466 or www.hocmn.org or contact the United States Department of Housing
3.24and Urban Development at 1-800-569-4287 or www.hud.gov."
3.25(c) This subdivision does not apply to:
3.26(1) a seller or buyer who has entered into a signed agency agreement, facilitator
3.27agreement, or other written agreement to buy or sell the mortgagor's property with a
3.28person licensed under chapter 82;
3.29(2) a buyer who offers to buy the mortgagor's property for a purchase price that
3.30meets or exceeds the amount required to be paid by the mortgagor to redeem the property,
3.31unless the buyer or the mortgagor enters into a short sale agreement with the holder of
3.32the sheriff's certificate in which the holder agrees to accept less than the full amount
3.33required to redeem;
3.34(3) a foreclosing lender acquiring the mortgagor's property by a deed in lieu of
3.35foreclosure;
4.1(4) a nonprofit lender holding a certificate of exemption from the Department of
4.2Commerce; or
4.3(5) the state or a local unit of government or an agent of the state or a local unit
4.4of government.
4.5 Sec. 3. [580.061] LIMITED RIGHT TO REMAIN IN HOME AFTER
4.6REDEMPTION PERIOD.
4.7After the end of the redemption period of residential real property, the former owner
4.8may retain possession and continue to occupy the property until two weeks prior to the day
4.9a new owner moves into the property. For purposes of this section, "new owner" means an
4.10individual who, or an entity that, purchased the property from the former owner's lender or
4.11from an intermediary owner. "New owner" does not include the former lender.
4.12 Sec. 4. EFFECTIVE DATE.
4.13Sections 1 to 3 are effective for foreclosures commenced on or after August 1, 2012.
