Bill Text: MN HF22 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Foreclosure forbearance provided for unemployed long-term homeowners.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-01-24 - Author added Slocum [HF22 Detail]
Download: Minnesota-2013-HF22-Introduced.html
1.2relating to real estate; foreclosure forbearance for unemployed long-term
1.3homeowners;proposing coding for new law in Minnesota Statutes, chapter 580.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [580.0211] FORECLOSURE FORBEARANCE FOR FINANCIAL
1.6HARDSHIP OF UNEMPLOYED LONG-TERM HOMEOWNERS.
1.7(a) Upon request and proof of eligibility provided by the mortgagor, a mortgagee
1.8shall defer commencement or continuation of a mortgage foreclosure for at least 12
1.9months for mortgagors: (1) who have lived in their current home that is subject to the
1.10mortgage for at least ten years; and (2) at least one of whom is unemployed and eligible
1.11for unemployment compensation or whose eligibility for it has expired.
1.12(b) Mortgagors who qualify under paragraph (a) and have lived in their current home
1.13that is subject to the mortgage for at least 20 years may request, and the mortgagee must
1.14provide, a deferral of commencement or continuation of foreclosure of at least 24 months.
1.15(c) A mortgagor may request and receive a deferral under paragraph (a) or (b) at
1.16any time before or during a foreclosure.
1.17(d) Interest may continue to accrue on the loan, unless otherwise agreed between
1.18the parties.
1.19(e) The mortgagee may at any time during the deferral period request the district
1.20court in the county in which the property is located to determine whether the mortgagor
1.21has income sufficient to make partial monthly payments on the mortgage loan, not
1.22to exceed 30 percent of the mortgagor's income, and the court may then condition
1.23continuation of the deferral upon reasonable compliance with the payment obligation. The
1.24mortgagee may make no more than one such request within any 12-month period.
2.1(f) The mortgagee must notify in writing, as part of the notice of default, any
2.2potentially eligible mortgagor of the mortgagor's rights under this section.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
1.3homeowners;proposing coding for new law in Minnesota Statutes, chapter 580.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [580.0211] FORECLOSURE FORBEARANCE FOR FINANCIAL
1.6HARDSHIP OF UNEMPLOYED LONG-TERM HOMEOWNERS.
1.7(a) Upon request and proof of eligibility provided by the mortgagor, a mortgagee
1.8shall defer commencement or continuation of a mortgage foreclosure for at least 12
1.9months for mortgagors: (1) who have lived in their current home that is subject to the
1.10mortgage for at least ten years; and (2) at least one of whom is unemployed and eligible
1.11for unemployment compensation or whose eligibility for it has expired.
1.12(b) Mortgagors who qualify under paragraph (a) and have lived in their current home
1.13that is subject to the mortgage for at least 20 years may request, and the mortgagee must
1.14provide, a deferral of commencement or continuation of foreclosure of at least 24 months.
1.15(c) A mortgagor may request and receive a deferral under paragraph (a) or (b) at
1.16any time before or during a foreclosure.
1.17(d) Interest may continue to accrue on the loan, unless otherwise agreed between
1.18the parties.
1.19(e) The mortgagee may at any time during the deferral period request the district
1.20court in the county in which the property is located to determine whether the mortgagor
1.21has income sufficient to make partial monthly payments on the mortgage loan, not
1.22to exceed 30 percent of the mortgagor's income, and the court may then condition
1.23continuation of the deferral upon reasonable compliance with the payment obligation. The
1.24mortgagee may make no more than one such request within any 12-month period.
2.1(f) The mortgagee must notify in writing, as part of the notice of default, any
2.2potentially eligible mortgagor of the mortgagor's rights under this section.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
