This bill amends several sections of the Minnesota Statutes concerning mortgage foreclosure, particularly focusing on the redemption process and the management of surplus funds. A significant change is the introduction of a "sworn statement" for occupants or tenants who pay delinquent taxes on behalf of the property owner, which will create a lien on the property. The bill also establishes new procedures for handling surplus funds from foreclosure sales, requiring sheriffs to notify property owners of any surplus and detailing how these funds can be applied toward redemption. Additionally, the redemption period is extended from seven to fourteen days, and the bill clarifies the rights of creditors during the redemption process, including necessary documentation for redemption.

Moreover, the bill modifies the satisfaction of mortgage debts to ensure that the amount received from a foreclosure sale fully satisfies the mortgage debt, except as specified in another statute. It introduces provisions for resolving competing claims to surplus funds and outlines the sheriff's responsibilities in these cases. The bill also includes new regulations for servicers regarding loss mitigation applications, prohibiting them from referring a mortgage loan to an attorney for foreclosure while a loss mitigation application is pending, and requiring them to halt foreclosure sales if a loss mitigation application is received after a sale has been scheduled. The effective date for many of these changes is set for redemptions occurring after January 1, 2026.

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