This bill amends several sections of the Minnesota Statutes concerning mortgage foreclosure, focusing on redemption processes and the management of surplus funds. A significant addition is the requirement for a "sworn statement" from occupants or tenants who pay delinquent taxes on behalf of property owners, which will create a lien on the property. The bill also establishes new procedures for handling surplus funds from foreclosure sales, including mandatory notifications to property owners about these funds and allowing them to request that surplus be applied to their redemption amount. Additionally, it extends the redemption period for creditors from seven to fourteen days and mandates that sheriffs maintain records of 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 costs such as taxes, insurance, and reasonable attorney fees can be claimed, with interest accruing from the payment date. It also introduces a requirement for an affidavit of allowable costs to be filed with the sheriff before the mortgagor's redemption period expires. The bill addresses dual tracking in foreclosure cases, prohibiting servicers from referring a mortgage loan for foreclosure while a loss mitigation application is pending, and outlines conditions for proceeding with foreclosure actions. These changes aim to enhance protections for mortgagors and ensure transparency throughout the foreclosure process, with many provisions effective 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