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 extends the redemption period from seven to fourteen days and clarifies the rights of creditors in the redemption process, detailing the necessary documentation for creditors to redeem.

Further amendments specify that the amount received from a foreclosure sale satisfies the mortgage debt, except as outlined in certain sections, and introduce provisions for resolving competing claims to surplus funds. The bill mandates that the holder of a sheriff's certificate must provide an affidavit itemizing allowable costs and the date of payment, which must be filed with the sheriff before the mortgagor's redemption period expires. It also addresses dual tracking in foreclosure proceedings, requiring servicers to halt foreclosure actions when a loss mitigation application is pending, while outlining conditions under which foreclosure may proceed. The effective date for many of these changes is set for redemptions occurring after January 1, 2026, aiming to protect mortgagors and ensure compliance from servicers.

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