June 17th, 2010
Minnesota mortgage foreclosure law has seen an array of changes over the past few years. This year will be no different. Effective August 1, 2010, the notices that an owner or mortgagor must receive before and during the mortgage foreclosure process will change.
Under Minn. Stat. § 580.041, a lender must serve an additional “Redemption Rights Notice” with the Notice of Mortgage Foreclosure Sale. As the name suggests, the “Redemption Rights Notice” describes what it means for a mortgagor to redeem, warns of scams, and provides contact information for foreclosure prevention counselors.
In addition, under Minn. Stat. § 580.06, if a third party “attempts” to acquire title to the mortgagor’s property after the sheriff’s sale but before the end of the redemption period, that party must provide the mortgagor with a notice titled “Notice to Mortgagor.” The “Notice to Mortgagor” details information regarding the sheriff’s sale and a mortgagor’s right to redeem and sell the home during the redemption period. A person who does not comply with this notice requirement can be held liable to the mortgagor for damages, costs, disbursements and attorney fees. In practicality, this probably only arises in the event of a “short sale” during the redemption period.