Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 474-S.F.No. 1776
           An act relating to real property; providing that the 
          mortgage and contract for deed moratorium shall not be 
          repealed until May 1, 1985; allowing catastrophic 
          medical expenses to be considered by a court when 
          determining delay of foreclosure sale; providing that 
          the equity in the property may be considered by a 
          court; amending Minnesota Statutes 1983 Supplement, 
          sections 47.20, subdivision 15; 559.21, subdivision 6; 
          580.031; 583.03; 583.05; and 583.08; Laws 1983, 
          chapter 215, section 16. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1983 Supplement, section 
47.20, subdivision 15, is amended to read: 
    Subd. 15.  Notwithstanding the provisions of any other law 
to the contrary, any notice of default on homestead property as 
defined in section 583.02, mailed after May 24, 1983 and prior 
to May 1, 1984 1985, shall indicate that the borrower has 60 
days from the date the notice is mailed in which to cure the 
default.  The notice shall include a statement that the borrower 
may be eligible for an extension of the time prior to 
foreclosure and execution sale under sections 583.01 to 583.12.  
    Sec. 2.  Minnesota Statutes 1983 Supplement, section 
559.21, subdivision 6, is amended to read:  
    Subd. 6.  [TEMPORARY MINIMUM NOTICE.] Notwithstanding the 
provisions of any other law to the contrary, no contract for 
conveyance of homestead property, as defined in section 583.02, 
shall terminate until 60 days after service of notice if the 
notice is served after May 24, 1983, and prior to May 1, 1984 
1985, or 90 days after service of notice if the contract was 
entered into after May 1, 1980 and the contract vendee has paid 
25 percent or more of the purchase price.  The notice shall 
specify this 60- or 90-day period.  The notice shall include a 
statement that the borrower may be eligible for an extension of 
the time prior to foreclosure and execution sale under sections 
583.01 to 583.12.  This section does not apply to earnest money 
contracts, purchase agreements or exercised options.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, section 
580.031, is amended to read: 
    580.031 [TEMPORARY MINIMUM NOTICE.] 
    Notwithstanding the provisions of any other law to the 
contrary, eight weeks' published notice must be given prior to 
the foreclosure sale of a homestead, as defined in section 
583.02, if the notice is published for the first time after May 
24, 1983 and prior to May 1, 1984 1985.  The notice must contain 
the information specified in section 580.04.  At least four 
eight weeks before the appointed time of sale, a copy of the 
notice must be served upon the person in possession of the 
mortgaged premises, if the premises are actually occupied.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
583.03, is amended to read: 
    583.03 [APPLICATION.] 
    Subdivision 1.  [PROPERTY COVERED.] The provisions of 
sections 47.20, subdivision 15, 559.21, subdivision 6, 580.031, 
and 583.01 to 583.12 apply to first mortgages secured by and 
contracts for deed conveying, homesteads within the meaning of 
section 583.02, including:  (a) (1) mortgages held by the United 
States or by any agency, department, bureau, or instrumentality 
of the United States, as security or pledge of the mortgagor, 
its successors or assigns; and (b) (2) mortgages held as 
security or pledge to secure payment of a public debt or to 
secure payment of the deposit of public funds.  
    Subd. 2.  [GENERAL EXCLUSION.] The provisions of sections 
47.20, subdivision 15, 559.21, subdivision 6, 580.031, and 
583.01 to 583.12 do not apply to mortgages or contracts for deed 
made after May 24, 1983, nor to mortgages or contracts for deed 
made before May 24, 1983, which are renewed or extended after 
May 24, 1983, for a period longer than one year, nor to 
mortgages, judgments, or contracts for deed, regardless of when 
made, if a second or subsequent mortgage is made against the 
property after May 24, 1983.  
    No court shall allow a stay, postponement, or extension of 
time that would cause any right to be lost or adversely affected 
by any statute of limitation.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
583.05, is amended to read:  
    583.05 [COURT MAY ORDER DELAY IN SALE; FINDINGS.] 
    The court may consider the following criteria in 
determining whether or not to order a delay in the sale or 
contract termination:  
    (1) that the petitioner is unemployed, underemployed, 
facing catastrophic medical expenses, or facing economic 
problems due to low farm commodity prices; and 
    (2) that the petitioner has an inability to make payments 
on the mortgage or contract for deed.  
    If the court grants or denies a delay in the sale, the 
mortgagee shall publish notice of the new sale date as provided 
in section 580.03.  Section 580.07 does not apply to foreclosure 
sales postponed by a court pursuant to sections 583.01 to 583.12.
    Sec. 6.  Minnesota Statutes 1983 Supplement, section 
583.08, is amended to read: 
    583.08 [PARTIAL PAYMENT.] 
    The petition must also request the court to determine the 
reasonable value of the income on the property, or, if the 
property has no income, then the reasonable rental value of the 
property subject to the contract for deed or mortgage and must 
direct the contract vendee or mortgagor to pay all or a 
reasonable part of the income or rental value for the payment of 
taxes, insurance, interest or principal at the times and in the 
manner determined by the court.  In determining the amount of 
income or rental value to be paid, the court may consider the 
relative financial conditions and resources of the parties, 
equity in the property held by the mortgagor or contract vendee, 
and the ability of the mortgagor or contract vendee to pay.  The 
court shall hear the petition and after the hearing shall make 
and file its order directing the payment by the contract vendee 
or mortgagor of an amount at the times and in the manner that 
the court determines just and equitable.  In the case of 
contracts for deed, the court shall insure that the payment 
required by the contract vendee is sufficient to adequately 
maintain the vendor's standard of living.  If the mortgagor or 
contract vendee defaults in the payments ordered, the mortgagee 
may immediately commence foreclosure proceedings as provided in 
section 580.03, and the contract vendor may terminate the 
contract 30 days after the default.  If default is claimed 
because of waste, the mortgagee or contract vendor may commence 
foreclosure proceedings or terminate the contract immediately 
after the filing of an order of the court finding the waste.  No 
action shall be maintained for a deficiency judgment until the 
period of redemption as allowed by section 580.23, or by 
sections 583.01 to 583.12, has expired.  
    Sec. 7.  Laws 1983, chapter 215, section 16, is amended to 
read: 
    Sec. 16.  [REPEALER.] 
    Sections 1 to 15 are repealed effective July 1, 1984 1985, 
but any postponement or other relief ordered by a court 
continues to be valid for the period ordered by the court. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 1 to 7 are effective May 1, 1984. 
    Approved April 25, 1984