Minnesota Amends Provisions Regarding Foreclosure
by Matthew Dailey, J.D.
The state of Minnesota amended its provisions relating to the action to foreclose. Affected are the publication requirements and defenses to foreclosure sales. These provisions regarding advertisements are effective on July 1, 2015 and apply to foreclosures in which the notice of pendency is recorded on or after that date.
The State Legislature first revised Minnesota Statutes 2014, section 580.07, subdivision 2 by addressing postponement of sale by mortgagor or owner. It added that the mortgagor’s redemption period for any subsequent foreclosure of the mortgage is not affected by the mortgagor’s ability to postpone foreclosure of their homestead property under section 273.124. This is effective the day following final enactment and applies to mortgages enacted before, on, or after that date.
Section 580.30, subdivision 1 regarding reinstatement was amended as well. The statute now reads:
“The holder of a mortgage shall inform the mortgagor of the amount necessary to reinstate the mortgage within three days of receipt of a request for a reinstatement amount from the mortgagor. If the amount necessary to reinstate the mortgage was not mailed to the mortgagor within three days of receipt of the request, no liability accrues to the party foreclosing the mortgage or the party’s attorney and the foreclosure is not invalidated if the mortgage reinstatement amount was mailed by first class mail to the mortgagor at least three days prior to the date of the completed sheriff’s sale. Notwithstanding any law to the contrary, the holder of a mortgage has no obligation to delay or postpone a foreclosure sale upon receipt of a request for a reinstatement amount when that request was made less than three days prior to the sale. The reinstatement amount provided is effective for a period of seven days after the holder of the mortgage provides it to the mortgagor or until the foreclosure sale, whichever occurs first.”
The Legislature added that every foreclosure sale by advertisement under power of sale that meets all statutory requirements is valid and effective against any objections including a defense that notice for postponement by the party conducting the sale was not timely or properly mailed or published.
Chapter 14- S.F.No. 1147
The state of Minnesota clarified the requirements for mortgage foreclosure by advertisement publications as well. Section 1 c. 580.033 now reads:
“Subdivision 1. Location of qualified newspaper. For purposes of this chapter, publication of the notice of sale is sufficient if it occurs:
(1) in a qualified newspaper having its known office of issue located in the county where the mortgaged premises, or some part of the mortgaged premises are located; or
(2) in a qualified newspaper having its known office of issue located in an adjoining county, if the publisher of the newspaper states, in the sworn affidavit of publication required by section 331A.07, that a substantial portion of the newspaper’s circulation is in the county where the mortgaged premises, or some part of the mortgaged premises are located.
In all cases, the affidavit of publication must state the county where the newspaper’s known office of issue is located and that the newspaper complies with the conditions described in clause (1) or (2).
Subd. 2. Definitions. As used in this section, “known office of issue” is defined as provided in section 331A.01, subdivision 2, and “qualified newspaper” is defined as provided in section 331A.01, subdivision 8.”
Matthew Dailey, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Stonehill College and earned his Juris Doctor at the New England School of Law. He is admitted to the Massachusetts Bar. Matthew can be reached at matthew@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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