Bill Text: MN SF1275 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Real estate purchase during the redemption period following a sheriff's sale regulation
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-26 - Referred to Commerce and Consumer Protection [SF1275 Detail]
Download: Minnesota-2011-SF1275-Introduced.html
1.2relating to real estate; regulating the purchase of real estate during the redemption
1.3period following a sheriff's sale;amending Minnesota Statutes 2010, section
1.4580.06, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 580.06, subdivision 2, is amended to read:
1.7 Subd. 2. Notice of results of sale required; contents. (a) Except as provided in
1.8paragraph (c), a person attempting to acquire fee title to the mortgagor's property directly
1.9from the mortgagor following the sheriff's sale and prior to the end of the redemption
1.10period must provide to the mortgagor, by personal delivery three days prior to entering into
1.11an agreement with the mortgagor to acquire title, notice of the results of the foreclosure
1.12as provided under paragraph (b).
1.13(b) The notice required under paragraph (a) must contain the following information:
1.14(1) the date the sale occurred;
1.15(2) the identity of the purchaser and any assignees of the purchaser;
1.16(3) the sheriff's sale price; and
1.17(4) the following statement: "There are very important things you need to know now
1.18that your house has been auctioned at the sheriff's sale:
1.19(i) you have (insert the number of months) to "redeem," which means to pay the
1.20winning bidder the sale price listed above (plus interest and costs) and keep your house;
1.21(ii) whether you can pay off the amount or not, YOU DO NOT HAVE TO MOVE
1.22RIGHT AWAY. YOU CAN KEEP LIVING IN YOUR HOME until the end of this
1.23redemption period;
2.1(iii) read all notices and documents related to the foreclosure of your home carefully!
2.2THE AMOUNT YOU NEED TO PAY THE WINNING BIDDER TO REDEEM YOUR
2.3HOUSE (THE SHERIFF'S SALE PRICE LISTED ABOVE, PLUS INTEREST AND
2.4COSTS) MAY BE LESS THAN THE AMOUNT YOU OWED ON YOUR MORTGAGE
2.5BEFORE THE SHERIFF'S SALE; and
2.6(iv) you can also try to sell your home during this "redemption period." You must sell
2.7it for enough to pay off the winning bidder from the sheriff's sale and pay interest, fees, and
2.8other claims against the property. You can also enter into a "short sale." A short sale is an
2.9agreement in which the lender accepts less than the full amount you owe on the mortgage.
2.10If there is any money left from the sale of the house after all these debts are paid,
2.11you can keep the money.
2.12For more information and advice, contact an attorney or a mortgage
2.13foreclosure prevention counselor. You can find a mortgage foreclosure prevention
2.14counselor in your county by calling the Minnesota Home Ownership Center
2.15at 651-659-9336 or 866-462-6466 or www.hocmn.org or contact the United
2.16States Department of Housing and Urban Development at 1-800-569-4287 or
2.17www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search=MN#searchArea."
2.18(c) This subdivision does not apply to:
2.19(1) a seller or buyer who has entered into a signed agency agreement, facilitator
2.20agreement, or other written agreement to buy or sell the mortgagor's property with a
2.21person licensed under chapter 82;
2.22(2) a buyer whooffers to buy the mortgagor's property for a purchase price that
2.23meets or exceeds the amount required to be paid by the mortgagor to redeem the property,
2.24unless the buyer or the mortgagor enters into a short sale agreement with the holder of the
2.25sheriff's certificate in which the holder agrees to accept less than the full amount required
2.26to redeem has a prior personal relationship with the foreclosed homeowner;
2.27(3) a foreclosing lender acquiring the mortgagor's property by a deed in lieu of
2.28foreclosure;
2.29(4) a nonprofit lender holding a certificate of exemption from the Department of
2.30Commerce; or
2.31(5) the state or a local unit of government or an agent of the state or a local unit
2.32of government.
2.33EFFECTIVE DATE.This section is effective for foreclosure sales conducted on or
2.34after the day following final enactment.
1.3period following a sheriff's sale;amending Minnesota Statutes 2010, section
1.4580.06, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 580.06, subdivision 2, is amended to read:
1.7 Subd. 2. Notice of results of sale required; contents. (a) Except as provided in
1.8paragraph (c), a person attempting to acquire fee title to the mortgagor's property directly
1.9from the mortgagor following the sheriff's sale and prior to the end of the redemption
1.10period must provide to the mortgagor, by personal delivery three days prior to entering into
1.11an agreement with the mortgagor to acquire title, notice of the results of the foreclosure
1.12as provided under paragraph (b).
1.13(b) The notice required under paragraph (a) must contain the following information:
1.14(1) the date the sale occurred;
1.15(2) the identity of the purchaser and any assignees of the purchaser;
1.16(3) the sheriff's sale price; and
1.17(4) the following statement: "There are very important things you need to know now
1.18that your house has been auctioned at the sheriff's sale:
1.19(i) you have (insert the number of months) to "redeem," which means to pay the
1.20winning bidder the sale price listed above (plus interest and costs) and keep your house;
1.21(ii) whether you can pay off the amount or not, YOU DO NOT HAVE TO MOVE
1.22RIGHT AWAY. YOU CAN KEEP LIVING IN YOUR HOME until the end of this
1.23redemption period;
2.1(iii) read all notices and documents related to the foreclosure of your home carefully!
2.2THE AMOUNT YOU NEED TO PAY THE WINNING BIDDER TO REDEEM YOUR
2.3HOUSE (THE SHERIFF'S SALE PRICE LISTED ABOVE, PLUS INTEREST AND
2.4COSTS) MAY BE LESS THAN THE AMOUNT YOU OWED ON YOUR MORTGAGE
2.5BEFORE THE SHERIFF'S SALE; and
2.6(iv) you can also try to sell your home during this "redemption period." You must sell
2.7it for enough to pay off the winning bidder from the sheriff's sale and pay interest, fees, and
2.8other claims against the property. You can also enter into a "short sale." A short sale is an
2.9agreement in which the lender accepts less than the full amount you owe on the mortgage.
2.10If there is any money left from the sale of the house after all these debts are paid,
2.11you can keep the money.
2.12For more information and advice, contact an attorney or a mortgage
2.13foreclosure prevention counselor. You can find a mortgage foreclosure prevention
2.14counselor in your county by calling the Minnesota Home Ownership Center
2.15at 651-659-9336 or 866-462-6466 or www.hocmn.org or contact the United
2.16States Department of Housing and Urban Development at 1-800-569-4287 or
2.17www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search=MN#searchArea."
2.18(c) This subdivision does not apply to:
2.19(1) a seller or buyer who has entered into a signed agency agreement, facilitator
2.20agreement, or other written agreement to buy or sell the mortgagor's property with a
2.21person licensed under chapter 82;
2.22(2) a buyer who
2.23
2.24
2.25
2.26
2.27(3) a foreclosing lender acquiring the mortgagor's property by a deed in lieu of
2.28foreclosure;
2.29(4) a nonprofit lender holding a certificate of exemption from the Department of
2.30Commerce; or
2.31(5) the state or a local unit of government or an agent of the state or a local unit
2.32of government.
2.33EFFECTIVE DATE.This section is effective for foreclosure sales conducted on or
2.34after the day following final enactment.
