This bill amends various sections of the Minnesota Statutes concerning mortgage foreclosure, redemption, and surplus funds. A significant change is the introduction of a "sworn statement" process for occupants or tenants who pay delinquent taxes on behalf of property owners, which will create a lien on the property from the date of recording. The bill also establishes new procedures for managing surplus funds from foreclosure sales, including requirements for sheriff notifications to property owners about the availability of surplus and the process for applying these funds toward redemption amounts. Additionally, it modifies the redemption period for creditors from seven days to 14 days and mandates that sheriffs maintain records of all redemption-related documents for public inspection.

Moreover, the bill clarifies the allowable costs that can be claimed upon redemption of a sheriff's certificate of sale, specifying that holders may claim costs such as taxes, insurance, and reasonable attorney fees, with interest accruing from the date of payment. It also addresses dual tracking in foreclosure cases, detailing conditions under which a servicer may refer a mortgage loan for foreclosure while a loss mitigation application is pending. The bill requires servicers to halt foreclosure sales if a loss mitigation application is received before a specified deadline and includes provisions for postponing or canceling foreclosure sales under certain circumstances. The effective date for many of these changes is set for January 1, 2026.

Statutes affected:
Introduction: 272.45, 580.10, 580.225, 580.24, 580.25, 580.26, 580.28, 582.03, 582.043
1st Engrossment: 272.45, 580.10, 580.225, 580.24, 580.25, 580.26, 580.28, 582.03, 582.043