1.1 	A bill for an act
1.2 	relating to mortgages; amending provisions relating to foreclosure;amending 
1.3 	Minnesota Statutes 2006, sections 580.02; 580.041, subdivision 2; 580.06; 
1.4 	580.07; 580.12; 580.23, subdivision 1; 580.25; 580.28; 580.30; 581.10; 582.03; 
1.5 	582.031; 582.032, subdivision 2; Minnesota Statutes 2007 Supplement, sections 
1.6 	510.05; 550.19; 550.22; 550.24; 580.24; Laws 2004, chapter 263, section 26; 
1.7 	proposing coding for new law in Minnesota Statutes, chapter 580.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2007 Supplement, section 510.05, is amended to read:
1.10 	510.05 LIMITATIONS.
1.11 	The amount of the homestead exemption shall not be reduced by and shall not extend 
1.12 	to any mortgage lawfully obtained thereon, to any valid lien for taxes or assessments, to a 
1.13 	claim filed pursuant to section 246.53 or 256B.15, to any charge arising under the laws 
1.14 	relating to laborers or material suppliers' liens or to any charge obtained under section 
1.15 	481.13 pursuant to a valid waiver of the homestead exemption. 

1.16 	Sec. 2. Minnesota Statutes 2007 Supplement, section 550.19, is amended to read:
1.17 	550.19 SERVICE ON JUDGMENT DEBTOR.
1.18 	If the sale is of personal property, at or before the time of posting notice of sale, the 
1.19 	officer shall serve a copy of the execution and inventory, and of such notice, upon the 
1.20 	judgment debtor, if the debtor is a resident of the county, in the manner required by law 
1.21 	for the service of a summons in a civil action. If the sale is of real property, a judgment 
1.22 	creditor must, at least four weeks before the appointed time of sale, serve a copy of the 
1.23 	notice of sale in like manner as a summons in a civil action in the district court upon the 
1.24 	judgment debtor if the judgment debtor is a resident of the county and upon any person 
2.1 	in possession of the homestead other than the judgment debtor. In addition, the notice 
2.2 	of sale must also be served upon all persons who have recorded a request for notice in 
2.3 	accordance with section 580.032.

2.4 	Sec. 3. Minnesota Statutes 2007 Supplement, section 550.22, is amended to read:
2.5 	550.22 CERTIFICATE OF SALE OF REALTY.
2.6 	When a sale of real property is made upon execution, or pursuant to a judgment or 
2.7 	order of a court, unless otherwise specified therein, the officer shall execute and deliver 
2.8 	to the purchaser a certificate containing:
2.9 	(1) a description of the execution, judgment, or order;
2.10 	(2) a description of the property;
2.11 	(3) the date of the sale and the name of the purchaser;
2.12 	(4) the price paid for each parcel separately;
2.13 	(5) if subject to redemption, the time allowed by law therefor;
2.14 	(6) the interest rate in effect on the date of the sheriff's sale;  and
2.15 	~~(6)~~ (7) the amount of the debtor's homestead exemption, if any, as determined under 
2.16 	section 550.175.
2.17 	Such certificate shall be executed, acknowledged, and recorded in the manner 
2.18 	provided by law for a conveyance of real property, shall be prima facie evidence of the 
2.19 	facts stated, and, upon expiration of the time for redemption, shall operate as a conveyance 
2.20 	to the purchaser of all the right, title, and interest of the person whose property is sold in 
2.21 	and to the same, at the date of the lien upon which the same was sold. Any person desiring 
2.22 	to perpetuate evidence that any real property sold under this section was not homestead 
2.23 	real property may procure an affidavit by the person enforcing the judgment, or that 
2.24 	person's attorney, or someone having knowledge of the facts, setting forth that the real 
2.25 	property was not homestead real property. The affidavit shall be recorded by the county 
2.26 	recorder or registrar of titles, and the affidavit and certified copies of the affidavit shall 
2.27 	be prima facie evidence of the facts stated in the affidavit.

2.28 	Sec. 4. Minnesota Statutes 2007 Supplement, section 550.24, is amended to read:
2.29 	550.24 REDEMPTION OF REALTY.
2.30 	(a) Upon the sale of real property, if the estate sold is less than a leasehold of two 
2.31 	years' unexpired term, the sale is absolute. In all other cases the property sold, or any 
2.32 	portion thereof which has been sold separately, is subject to redemption as provided 
2.33 	in this section.
3.1 	(b) The judgment debtor, the debtor's heirs, successors, legal representatives, or 
3.2 	assigns may redeem within one year after the day of sale, or order confirming sale if the 
3.3 	property is a homestead, by paying, to the purchaser or the officer making the sale, the 
3.4 	amount for which the property was sold with interest at the rate stated in the certificate of 
3.5 	sale, on the amount of the sale in excess of the homestead exemption, at the judgment rate 
3.6 	and if the purchaser is a creditor having a prior lien, the amount thereof, with interest, on 
3.7 	the amount of the sale in excess of the homestead exemption, at the judgment rate together 
3.8 	with any costs as provided in sections 582.03 and 582.031.
3.9 	(c) If there is no redemption during the debtor's redemption period, creditors having 
3.10 	a lien, legal or equitable, on the property or some part thereof, subsequent to that on 
3.11 	which it was sold may redeem in the manner provided for redemption by creditors of the 
3.12 	mortgagor in section 580.24, in the order of their respective liens. 
3.13 	(d) If the property is abandoned during the judgment debtor's redemption period, 
3.14 	the person holding the sheriff's certificate may request that the court reduce the judgment 
3.15 	debtor's redemption period to five weeks using the procedures provided for a foreclosure 
3.16 	by action in section 582.032, subdivision 5.

3.17 	Sec. 5. Minnesota Statutes 2006, section 580.02, is amended to read:
3.18 	580.02 REQUISITES FOR FORECLOSURE.
3.19 	To entitle any party to make such foreclosure, it is requisite:
3.20 	(1) that some default in a condition of such mortgage has occurred, by which the 
3.21 	power to sell has become operative;
3.22 	(2) that no action or proceeding has been instituted at law to recover the debt then 
3.23 	remaining secured by such mortgage, or any part thereof, or, if the action or proceeding 
3.24 	has been instituted, that the same has been discontinued, or that an execution upon the 
3.25 	judgment rendered therein has been returned unsatisfied, in whole or in part;
3.26 	(3) that the mortgage has been recorded and, if it has been assigned, that all 
3.27 	assignments thereof have been recorded; provided, that, if the mortgage is upon registered 
3.28 	land, it shall be sufficient if the mortgage and all assignments thereof have been duly 
3.29 	registered~~.~~; and
3.30 	(4) before the notice of pendency as required under section 580.032 is recorded, the 
3.31 	party has complied with section 580.021.

3.32 	Sec. 6. [580.021] OFFER OF FORECLOSURE PREVENTION COUNSELING.
3.33 		Subdivision 1.Applicability. This section applies to foreclosure of mortgages under 
3.34 	this chapter on property consisting of one to four family dwelling units, one of which 
4.1 	the owner occupies as the owner's principal place of residency on the date of service of 
4.2 	the notice of sale of the owner.
4.3 		Subd. 2.Requirement to provide notice of opportunity for counseling. When 
4.4 	the written notice required under section 47.20, subdivision 8, is provided and before the 
4.5 	notice of pendency under section 580.032, subdivision 3, is filed, a party foreclosing on a 
4.6 	mortgage must provide to the mortgagor information contained in a form prescribed in 
4.7 	section 580.022, subdivision 1, that:
4.8 	(1) foreclosure prevention counseling services provided by an authorized foreclosure 
4.9 	prevention agency are available; and
4.10 	(2) notice that if the form is not returned within the stated time period, the party 
4.11 	will transmit the homeowner's name, address, and telephone number to an approved 
4.12 	foreclosure prevention agency.
4.13 	Nothing in this subdivision prohibits the notices required by this subdivision 
4.14 	from being provided concurrently with the written notice required under section 47.20, 
4.15 	subdivision 8.
4.16 	For the purposes of this section, an "authorized foreclosure counseling agency" is 
4.17 	a nonprofit agency approved by the Minnesota Housing Finance Agency or the United 
4.18 	States Department of Housing and Urban Development to provide foreclosure prevention 
4.19 	counseling services.
4.20 		Subd. 3.Option to decline counseling. In order to decline counseling, a mortgagor 
4.21 	shall have three weeks from the date of mailing of the information required under 
4.22 	subdivision 2 to return the form prescribed in section 580.022, subdivision 1, to the person 
4.23 	and address identified on the form.
4.24 		Subd. 4.Notification to authorized counseling agency. If the form prescribed in 
4.25 	section 580.022, subdivision 1, is not returned within the time period, the party entitled 
4.26 	to foreclose shall, within one week of the expiration of the time period, provide to the 
4.27 	appropriate authorized foreclosure prevention agency the mortgagor's name, address, 
4.28 	and most recent known telephone number.
4.29 		Subd. 5.Notice of provision of counseling; request for contact information. (a) 
4.30 	An authorized foreclosure prevention agency that contacts or is contacted by a mortgagor 
4.31 	or the mortgagor's authorized representative and agrees to provide foreclosure prevention 
4.32 	assistance services to the mortgagor or representative must provide the form prescribed in 
4.33 	section 580.022 to the mortgagee. The form serves as notice to the mortgagee that the 
4.34 	mortgagor is receiving foreclosure prevention counseling assistance.
5.1 	(b) The mortgagee must return the form to the authorized foreclosure prevention 
5.2 	agency within 15 days of receipt of the form with the name and telephone number of the 
5.3 	mortgagee's agent. The agent must be a person authorized by the mortgagee to:
5.4 	(1) discuss with the authorized foreclosure prevention agency or the mortgagor 
5.5 	the terms of the mortgage; and
5.6 	(2) negotiate any resolution to the mortgagor's default.
5.7 	(c) Nothing in this subdivision requires a mortgagee to reach a resolution relating to 
5.8 	the mortgagor's default.

5.9 	Sec. 7. [580.022] FORMS.
5.10 		Subdivision 1.Option to Decline Counseling form. The notice required under 
5.11 	section 580.021, subdivision 2, clause (2), must be printed on colored paper that is other 
5.12 	than the color of any other document provided with it and must appear substantially 
5.13 	as follows:
5.14 	"PREFORECLOSURE NOTICE
5.15 	Option to Decline Foreclosure Prevention Counseling
5.16 	Why You Are Getting This Notice
5.17 	We do not want you to lose your home and your equity. Government-approved 
5.18 	nonprofit agencies are available to, if possible, help you prevent foreclosure.
5.19 	We want your permission to allow an authorized foreclosure prevention counseling 
5.20 	agency to contact you to help you prevent foreclosure.
5.21 	What Happens If You Don't Do Anything
5.22 	If we do not receive this form back by [insert date], we will give your contact 
5.23 	information to a foreclosure prevention counseling agency that will contact you to start the 
5.24 	process of helping you prevent foreclosure.
5.25 	What Happens If You Check the Box and Send This Notice Back
5.26 	We will not send your contact information to a foreclosure prevention counseling 
5.27 	agency.
5.28 	Who Are These Foreclosure Prevention Counseling Agencies
5.29 	They are nonprofit agencies who are experts in housing and foreclosure prevention 
5.30 	counseling and assistance. They are experienced in dealing with lenders and homeowners 
5.31 	who are behind on mortgage payments and can help you understand your options and 
5.32 	work with you to address your delinquency. They are approved by either the Minnesota 
5.33 	Housing Finance Agency or the United States Department of Housing and Urban 
5.34 	Development. They are not connected with us in any way.
6.1 	Which Agency Will Contact You
6.2 	[insert name, address, and telephone number of agency]
6.3 	You can also contact them instead.
6.4 	Summary of Your Options

6.5

6.6

1.

If you WANT to be contacted by an authorized foreclosure prevention 
counseling agency, DO NOTHING.

6.7
6.8

6.9

2.

If you DON'T WANT to be contacted by an authorized foreclosure 
prevention counseling agency, SEND BACK THE FORM BY [insert 
date.]

6.10

6.11

â–¡

I wish to decline foreclosure prevention counseling and ask you not to give 
my contact information to any foreclosure prevention counseling agency.

6.12 | Signed, | |
6.13 | _____ | | _____
6.14 | (Name of Homeowner) | | Date

6.15 | Mail to:
6.16 | [Name of person to whom form is to be returned, if applicable]
6.17 | [Name of entity to which form is to be returned]
6.18 | [Address of entity to which form is to be returned]
6.19 | [Phone number of entity to which form is to be returned]"
6.20 		Subd. 2.Notice of Counseling and Request for Contact Information form. The 
6.21 	notice required in section 580.021, subdivision 5, must be substantially in the following 
6.22 	form:
6.23 	"PREFORECLOSURE NOTICE
6.24 	NOTICE OF PROVISION OF FORECLOSURE PREVENTION COUNSELING 
6.25 	AND REQUEST FOR MORTGAGEE CONTACT INFORMATION
6.26 	[Insert agency name] has been contacted by your customer regarding foreclosure 
6.27 	prevention counseling in response to the current foreclosure proceedings involving the 
6.28 	customer's real property. Please provide the following contact information pursuant to 
6.29 	Minnesota Statutes, section 580.021, subdivision 5, by completing and returning this form 
6.30 	via fax [insert fax number] or via e-mail at [insert e-mail address].

6.31 | To be completed by Counseling Agency

6.32

Consumer Name:
_____

6.33 | CONSUMER CONTACT INFORMATION:

6.34

Address:
_____

6.35

City, State, Zip Code:
_____

6.36

Daytime Phone:
_____

6.37

Nighttime Phone:
_____

7.1 | PROPERTY AT RISK FOR FORECLOSURE (if differs from above):

7.2

Address:
_____

7.3

City, State, Zip Code:
_____

7.4 | COUNSELING AGENCY CONTACT:

7.5

Name:
_____

7.6

Agency:
_____

7.7

Phone:
_____

7.8

Fax:
_____

7.9

E-mail:
_____

7.10 | To be completed by Lender

7.11

Contact Name:
_____

7.12

Address:
_____

7.13

City, State, Zip Code:
_____

7.14

Phone:
_____

7.15

Fax:
_____

7.16 | E-mail:_____"

7.17 	Sec. 8. Minnesota Statutes 2006, section 580.041, subdivision 2, is amended to read:
7.18 		Subd. 2.Content of notice. The notice required by this section must appear 
7.19 	substantially as follows:
7.20 	"Help For Homeowners in Foreclosure
7.21 	~~Minnesota law requires that we send you this notice about the foreclosure process.~~ 
7.22 	~~Please read it carefully.~~

7.23

The attorney preparing this foreclosure is:
_____

7.24 | (Attorney name, address, phone)
7.25 | It is being prepared for:
7.26 | _____
7.27 | (Lender name, loss mitigation phone number)
7.28 	AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring 
7.29 	your mortgage up to date. You must pay this amount to keep your house from going 
7.30 	through a sheriff's sale. The sheriff's sale is scheduled for [insert date] at [insert 
7.31 	time] at [insert place].
7.32 	Mortgage foreclosure is a complex process. ~~Some~~ People may ~~approach~~ contact you 
7.33 	~~about "saving"~~ with advice and offers to help "save" your home. ~~You should be~~ 
7.34 	~~careful about any such promises.~~
7.35 	~~The state encourages you to become informed about your options in foreclosure~~ 
7.36 	~~before entering into any agreements with anyone in connection with the foreclosure~~ 
7.37 	~~of your home. There are government agencies and nonprofit organizations that you~~ 
8.1 	~~may contact for helpful information about the foreclosure process. For the name and~~ 
8.2 	~~telephone number of an organization near you please call the Minnesota Housing~~ 
8.3 	~~Finance Agency (MHFA) at (insert telephone number). The state does not guarantee~~ 
8.4 	~~the advice of these agencies.~~
8.5 	~~Do not delay dealing with the foreclosure because your options may become more~~ 
8.6 	~~limited as time passes."~~
8.7 	Remember: It is important that you learn as much as you can about foreclosure and 
8.8 	your situation. Find out about all your options before you make any agreements with 
8.9 	anyone about the foreclosure of your home.
8.10 	Getting Help
8.11 	As soon as possible, you should contact your lender at the above number to talk 
8.12 	about things you might be able to do to prevent foreclosure. You should also 
8.13 	consider contacting the foreclosure prevention counselor in your area. A foreclosure 
8.14 	prevention counselor can answer your questions, offer free advice, and help you 
8.15 	create a plan which makes sense for your situation.
8.16 	Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466 
8.17 	or www.hocmn.org to get the phone number and location of the nearest counseling 
8.18 	organization. Call today. The longer you wait, the fewer options you may have for 
8.19 	a desirable result.
8.20 	Information About the Foreclosure Process
8.21 	You do not need to move at the time of the sheriff's sale. After the sheriff's sale you 
8.22 	have the right to "redeem." Redeem means that you pay off the entire loan amount 
8.23 	plus fees to keep your house. You can keep living in your home for a period of time. 
8.24 	This is called a "redemption period." The redemption period is [insert number of 
8.25 	months] months after the sheriff's sale. This redemption period is your chance to 
8.26 	try and sell your home or refinance it with a different loan. You can also pay the 
8.27 	redemption amount with any other funds you have available. At the end of the 
8.28 	redemption period you will have to leave your home. If you do not, the person or 
8.29 	company that bid on your home at the sheriff's sale has the right to file an eviction 
8.30 	against you in district court."

8.31 	Sec. 9. [580.042] FORECLOSURE ADVICE NOTICE TO TENANT.
8.32 		Subdivision 1.Applicability. This section applies to foreclosure of mortgages 
8.33 	under this chapter.
8.34 		Subd. 2.Form of delivery of notice. The notice required by this section must be in 
8.35 	14-point boldface type and must be printed on colored paper that is other than the color of 
9.1 	the notice of foreclosure and of the notice to be given under section 580.041, subdivision 
9.2 	1b, and that does not obscure or overshadow the content of the notice. The title of the 
9.3 	notice must be in 20-point boldface type. The notice must be on its own page.
9.4 		Subd. 3.Content of notice. The notice required by this section must appear 
9.5 	substantially as follows.
9.6 	Foreclosure: Advice to Tenants
9.7 	You are renting in a property that is in foreclosure. Minnesota law requires that we 
9.8 	send you this notice about the foreclosure process. Please read it carefully.
9.9 	The mortgage foreclosure does not change the terms of your lease. You and 
9.10 	your landlord must continue to follow the terms of your lease, including the rights 
9.11 	and responsibilities of you and your landlord. You must keep paying rent unless you 
9.12 	have a legal reason to withhold it. Your landlord must keep the property repaired. 
9.13 	Utilities must be paid under the terms of your lease or under state law.
9.14 	Moving out of the property early might be a violation of your lease. The date 
9.15 	of the sheriff's foreclosure sale is in the attached foreclosure notice. In most cases you 
9.16 	do not need to move from the property before the sheriff's foreclosure sale. Read your 
9.17 	lease to see if it says anything about foreclosure and about the rights you may have if the 
9.18 	property is in foreclosure. If you have a month-to-month lease, the foreclosure notice does 
9.19 	not change the rules for ending your lease. You and your landlord must still give legal 
9.20 	notice to end your lease.
9.21 	In most cases, your landlord has six months after the date of the sheriff's foreclosure 
9.22 	sale to pay off the mortgage. This is called the redemption period. Read the attached 
9.23 	foreclosure notice to determine the length of the redemption period. You cannot be asked 
9.24 	to move during the redemption period except for lease violations or if your lease expires 
9.25 	during the redemption period. If your landlord stops the foreclosure, you may not have to 
9.26 	move from the property. If your landlord does not stop the foreclosure, there will be a new 
9.27 	owner of the property at the end of the redemption period.
9.28 	The new owner may have the legal right to ask you to move even if your lease is 
9.29 	not over. But, the new owner must still give you a written notice stating that the new 
9.30 	owner wants you to move.
9.31 	Do not wait to get information about foreclosure. Mortgage foreclosure is a 
9.32 	complicated process. It is important you learn about your rights as a renter when there 
9.33 	is a mortgage foreclosure. You may have fewer options if you wait too long. There 
9.34 	are government agencies and nonprofit organizations that you may contact for helpful 
9.35 	information about the foreclosure process. For the name and telephone number of an 
9.36 	organization near you, please call the legal aid office or bar association office in your 
10.1 	county. You also can find information on tenant rights at HOME Line at (866) 866-3546 
10.2 	and Law Help Minnesota at http://www.LawHelpMN.org. The state of Minnesota does 
10.3 	not guarantee the advice of these agencies and organizations.
10.4 		Subd. 4.Affidavit. Any person may establish compliance with or inapplicability of 
10.5 	this section by recording, with the county recorder or registrar of titles, an affidavit by 
10.6 	a person having knowledge of the facts, stating that the notice required by this section 
10.7 	has been delivered in compliance with this section. The affidavit and a certified copy of a 
10.8 	recorded affidavit shall be prima facie evidence of the facts stated in the affidavit. The 
10.9 	affidavit may be recorded regarding any foreclosure sale, including foreclosure sales 
10.10 	which occurred prior to August 1, 2008, and may recorded separately or as part of the 
10.11 	record of a foreclosure.
10.12 		Subd. 5.Validation of foreclosure sales; remedy for violation. (a) No mortgage 
10.13 	foreclosure sale under this chapter shall be invalid because of failure to comply with 
10.14 	this section.
10.15 	(b) The remedy for a violation of this section shall be limited to actual damages 
10.16 	caused by such violation, not to exceed $1,000, and shall be available only to the tenant 
10.17 	of the mortgaged premises who occupied the mortgaged premises during the redemption 
10.18 	period of the mortgagor. Any legal action brought to enforce the provisions of this section 
10.19 	must be commenced by the last day of the redemption period of the mortgagor. A plaintiff 
10.20 	shall have no cause of action if the defendant has complied with section 580.03.

10.21 	Sec. 10. Minnesota Statutes 2006, section 580.06, is amended to read:
10.22 	580.06 SALE, HOW AND BY WHOM MADE.
10.23 	The sale shall be made by the sheriff or the sheriff's deputy at public vendue to the 
10.24 	highest bidder, in the county in which the premises to be sold, or some part thereof, are 
10.25 	situated, between 9:00 a.m. and ~~the setting of the sun~~ 4:00 p.m.

10.26 	Sec. 11. Minnesota Statutes 2006, section 580.07, is amended to read:
10.27 	580.07 POSTPONEMENT.
10.28 	The sale may be postponed, from time to time, by the party conducting the 
10.29 	foreclosure, by inserting a notice of the postponement, as soon as practicable, in the 
10.30 	newspaper in which the original advertisement was published, ~~and continuing the~~ 
10.31 	~~publication until the time to which the sale is postponed,~~ at the expense of the party 
10.32 	requesting the postponement.

11.1 	Sec. 12. Minnesota Statutes 2006, section 580.12, is amended to read:
11.2 	580.12 CERTIFICATE OF SALE; RECORD; EFFECT.
11.3 	When any sale of real property is made under a power of sale contained in any 
11.4 	mortgage, the officer shall make and deliver to the purchaser a certificate, executed in the 
11.5 	same manner as a conveyance, containing:
11.6 	(1) a description of the mortgage;
11.7 	(2) a description of the property sold;
11.8 	(3) the price paid for each parcel sold;
11.9 	(4) the time and place of the sale, and the name of the purchaser;
11.10 	(5) the interest rate in effect on the date of the sheriff's sale; and
11.11 	~~(5)~~ (6) the time allowed by law for redemption, provided that if the redemption 
11.12 	period stated in the certificate is five weeks and a longer redemption period was stated in 
11.13 	the published notice of foreclosure sale, a certified copy of the court order entered under 
11.14 	section 582.032, authorizing reduction of the redemption period to five weeks, must be 
11.15 	attached to the certificate. 
11.16 	A certificate which states a five-week redemption period must be recorded within 
11.17 	ten days after the sale; any other certificate must be recorded within 20 days after the 
11.18 	sale. When so recorded, upon expiration of the time for redemption, the certificate shall 
11.19 	operate as a conveyance to the purchaser or the purchaser's assignee of all the right, title, 
11.20 	and interest of the mortgagor in and to the premises named therein at the date of such 
11.21 	mortgage, without any other conveyance. A certificate must not contain a time allowed 
11.22 	for redemption that is less than the time specified by section 580.23, 582.032, or 582.32, 
11.23 	whichever applies. 

11.24 	Sec. 13. Minnesota Statutes 2006, section 580.23, subdivision 1, is amended to read:
11.25 		Subdivision 1.Six-month redemption period. When lands have been sold in 
11.26 	conformity with the preceding sections of this chapter, the mortgagor, the mortgagor's 
11.27 	personal representatives or assigns, within six months after such sale, except as otherwise 
11.28 	provided in subdivision 2 or section 582.032 or 582.32, may redeem such lands, as 
11.29 	hereinafter provided, by paying the sum of money for which the same were sold, with 
11.30 	interest from the time of sale at the rate provided to be paid on the mortgage debt as stated 
11.31 	in the certificate of sale and, if no rate be provided in the ~~mortgage note~~ certificate of 
11.32 	sale, at the rate of six percent per annum, together with any further sums which may be 
11.33 	payable as provided in sections 582.03 and 582.031. Delivery of funds and documents for 
11.34 	redemption shall be made at the normal place of business of the recipient, on days other 
11.35 	than Sunday, Saturday, and legal holidays, between the hours of 9:00 a.m. and 4:00 p.m. 
12.1 	Regardless of the length of the redemption period, the sheriff may accept a specific sum 
12.2 	less than the full amount due for redemption by the mortgagor upon receipt by the sheriff 
12.3 	of written confirmation from the holder of the sheriff's certificate or the attorney for the 
12.4 	holder of the sheriff's certificate that the holder of the sheriff's certificate has agreed to 
12.5 	accept a specific sum less than the full amount due for redemption.

12.6 	Sec. 14. Minnesota Statutes 2007 Supplement, section 580.24, is amended to read:
12.7 	580.24 REDEMPTION BY CREDITOR.
12.8 	(a) If no redemption is made by the mortgagor, the mortgagor's personal 
12.9 	representatives or assigns, the most senior creditor having a legal or equitable lien upon 
12.10 	the mortgaged premises, or some part of it, subsequent to the foreclosed mortgage, may 
12.11 	redeem within seven days after the expiration of the redemption period determined under 
12.12 	section 580.23 or 582.032, whichever is applicable; and each subsequent creditor having a 
12.13 	lien may redeem, in the order of priority of their respective liens, within seven days after 
12.14 	the time allowed the prior lienholder by paying the amount required under this section. 
12.15 	However, no creditor is entitled to redeem unless, ~~within~~ more than two months prior to 
12.16 	the expiration of the period allowed for redemption by the mortgagor if the period is six 
12.17 	or 12 months, or more than two weeks prior to the expiration of the period allowed for 
12.18 	redemption by the mortgagor if the period is five weeks, the creditor:
12.19 	(1) records with each county recorder and registrar of titles where the foreclosed 
12.20 	mortgage is recorded a notice of the creditor's intention to redeem;
12.21 	(2) records ~~in each office~~ with each county recorder and registrar of titles where the 
12.22 	notice of the creditor's intention to redeem is recorded all documents necessary to create 
12.23 	the lien on the mortgaged premises and to evidence the creditor's ownership of the lien, 
12.24 	including a copy of any money judgment necessary to create the lien; and
12.25 	(3) after complying with clauses (1) and (2), delivers to the sheriff who conducted the 
12.26 	foreclosure sale or the sheriff's successor in office a copy of each of the documents required 
12.27 	to be recorded under clauses (1) and (2), with the office, date and time of filing for record 
12.28 	stated on the first page of each document. If the creditor's lien is created or perfected two 
12.29 	months or less prior to the expiration of a six- or 12-month period allowed for redemption 
12.30 	by the mortgagor, or two weeks or less prior to the expiration of a five-week period 
12.31 	allowed for redemption by the mortgagor, the creditor may redeem if the creditor: (i) 
12.32 	commences a suit in the district court naming the foreclosing creditor, the mortgagor, any 
12.33 	known occupants, and any creditors who have recorded a notice of intention to redeem, 
12.34 	(ii) records with each county recorder and registrar of titles where the foreclosed mortgage 
12.35 	is recorded a lis pendens related to the suit, and (iii) records with each county recorder and 
13.1 	registrar of titles where the lis pendens is recorded all documents necessary to create the 
13.2 	lien on the mortgaged premises and to evidence the creditor's ownership of the lien; and 
13.3 	(4) after complying with clauses (1), (2), and (3), delivers to the sheriff who 
13.4 	conducted the foreclosure sale or the sheriff's successor in office a copy of each of the 
13.5 	documents required to be recorded under clauses (2) and (3), with the office, date, and 
13.6 	time of filing for record state on the first page of each document.
13.7 	The sheriff shall maintain for public inspection all documents delivered to the sheriff 
13.8 	and shall note the date of delivery on each document. The sheriff may charge a fee of 
13.9 	$100 for the documents delivered to the sheriff relating to each lien. The sheriff shall 
13.10 	maintain copies of documents delivered to the sheriff for a period of six months after the 
13.11 	end of the mortgagor's redemption period.
13.12 	(b) Saturdays, Sundays, legal holidays, and the first day following the expiration 
13.13 	of the prior redemption period must be included in computing the seven-day redemption 
13.14 	period. When the last day of the period falls on Saturday, Sunday, or a legal holiday, 
13.15 	that day must be omitted from the computation. The order of redemption by judgment 
13.16 	creditors subsequent to the foreclosed mortgage shall be determined by the order in which 
13.17 	their judgments were entered as memorials on the certificate of title for the foreclosed 
13.18 	premises or docketed in the office of the district court administrator if the property is not 
13.19 	registered under chapter 508 or 508A, regardless of the homestead status of the property. 
13.20 	All mechanic's lienholders who have coordinate liens shall have one combined seven-day 
13.21 	period to redeem.
13.22 	(c) The amount required to redeem from the holder of the sheriff's certificate of sale 
13.23 	is the amount required under section 580.23. The amount required to redeem from a 
13.24 	person holding a certificate of redemption is:
13.25 	(1) the amount paid to redeem as shown on the certificate of redemption; plus
13.26 	(2) interest on that amount to the date of redemption; plus
13.27 	(3) the amount claimed due on the person's lien, as shown on the affidavit under 
13.28 	section 580.25, clause (3).
13.29 	The amount required to redeem may be paid to the holder of the sheriff's certificate 
13.30 	of sale or the certificate of redemption, as the case may be, or to the sheriff for the holder.

13.31 	Sec. 15. Minnesota Statutes 2006, section 580.25, is amended to read:
13.32 	580.25 REDEMPTION, HOW MADE.
13.33 	Redemption shall be made as provided in this section.
13.34 	The person desiring to redeem shall pay the amount required by law for the 
13.35 	redemption, and shall produce to the person or officer receiving the redemption payment:
14.1 	(1) a copy of the docket of the judgment, or of the recorded deed or mortgage, or 
14.2 	of the record or files evidencing any other lien under which the person claims a right to 
14.3 	redeem~~, certified by the officer with custody of the docket, record, or files, or the original~~ 
14.4 	~~deed or mortgage with the certificate of record endorsed on it~~;
14.5 	(2) a copy of any recorded assignment necessary to evidence the person's ownership 
14.6 	of the lien~~, certified by the officer with custody of the assignment, or the original of each~~ 
14.7 	~~instrument of assignment with the certificate of record endorsed on it~~. If the redemption is 
14.8 	under an assignment of a judgment, the assignment shall be filed in the court entering the 
14.9 	judgment, as provided by law, and the person so redeeming shall produce a ~~certified~~ copy 
14.10 	of it and of the record of its filing, and the copy of the docket shall show that the proper 
14.11 	entry was made upon the docket. No further evidence of the assignment of the judgment is 
14.12 	required unless the mortgaged premises or part of it is registered property, in which case 
14.13 	the judgment and all assignments of the judgment must be entered as a memorial upon the 
14.14 	certificate of title to the mortgaged premises and ~~the original~~ a copy of the judgment and 
14.15 	each assignment with the certificate of record endorsed on it~~, or a copy certified by the~~ 
14.16 	~~registrar of titles,~~ must be produced; and
14.17 	(3) an affidavit of the person or the person's agent, showing the amount then actually 
14.18 	claimed due on the person's lien and required to be paid on the lien in order to redeem 
14.19 	from the person. No additional fees or charges shall be claimed due except as provided 
14.20 	in section 582.03.
14.21 	If redemption is made to the sheriff, the sheriff may charge a fee of $250 for issuing 
14.22 	the certificate of redemption and any related service. No other fee may be charged by the 
14.23 	sheriff for a redemption.
14.24 	Within 24 hours after a redemption is made, the person redeeming shall cause the 
14.25 	documents so required to be produced to be ~~filed~~ recorded with the county recorder, or 
14.26 	registrar of titles, who may receive fees as prescribed in section 357.18 or 508.82. If the 
14.27 	redemption is made at any place other than the county seat, it is sufficient forthwith to 
14.28 	deposit the documents in the nearest post office, addressed to the recorder or registrar of 
14.29 	titles, with the postage prepaid. A person recording documents produced for redemption 
14.30 	shall, on the same day, deliver copies of the documents to the sheriff for public inspection. 
14.31 	The sheriff may receive a fee of $20 for the documents delivered following a redemption. 
14.32 	The sheriff shall note the date of delivery on the documents and shall maintain for public 
14.33 	inspection all documents delivered to the sheriff for a period of six months after the end of 
14.34 	the mortgagor's redemption period. 

15.1 	Sec. 16. Minnesota Statutes 2006, section 580.28, is amended to read:
15.2 	580.28 ACTION TO SET ASIDE MORTGAGE; FORECLOSURE; 
15.3 	REDEMPTION.
15.4 	When an action is brought wherein it is claimed that any mortgage as to the plaintiff 
15.5 	or person for whose benefit the action is brought is fraudulent or void, or has been paid or 
15.6 	discharged, in whole or in part, or the relative priority or the validity of liens is disputed, 
15.7 	if such mortgage has been foreclosed by advertisement, and the time for redemption 
15.8 	from the foreclosure sale will expire before final judgment in such action, the plaintiff or 
15.9 	beneficiary having the right to redeem, for the purpose of saving such right in case the 
15.10 	action fails, may deposit with the sheriff before the time of redemption expires the amount 
15.11 	for which the mortgaged premises were sold, with interest thereon to the time of deposit, 
15.12 	together with a bond to the holder of the sheriff's certificate of sale, in an amount and with 
15.13 	sureties to be approved by the sheriff, conditioned to pay all interest that may accrue or be 
15.14 	allowed on such deposit if the action fail. The person shall, in writing, notify such sheriff 
15.15 	that the person claims the mortgage to be fraudulent or void, or to have been paid or 
15.16 	discharged, in whole or in part, as the case may be, and that such action is pending, and 
15.17 	direct the sheriff to retain such money and bond until final judgment. In case such action 
15.18 	fails, such deposit shall operate as a redemption of the premises from such foreclosure 
15.19 	sale, and entitle the plaintiff to a certificate thereof. Such foreclosure, deposit, bond, and 
15.20 	notice shall be brought to the attention of the court by supplemental complaint in the 
15.21 	action, and the judgment shall determine the validity of the foreclosure sale, and the rights 
15.22 	of the parties to the moneys and bond so deposited, which shall be paid and delivered by 
15.23 	the sheriff as directed by such judgment upon delivery to the sheriff of a certified copy 
15.24 	thereof. The remedy herein provided shall be in addition to other remedies now existing.

15.25 	Sec. 17. Minnesota Statutes 2006, section 580.30, is amended to read:
15.26 	580.30 MORTGAGES, WHEN REINSTATED.
15.27 		Subdivision 1.Reinstatement. In any proceedings for the foreclosure of a real estate 
15.28 	mortgage, whether by action or by advertisement, if at any time before the sale of the 
15.29 	premises under such foreclosure the mortgagor, the owner, or any holder of any subsequent 
15.30 	encumbrance or lien, or any one for them, shall pay or cause to be paid to the holder of the 
15.31 	mortgage so being foreclosed, or to the attorney foreclosing the same, or to the sheriff of 
15.32 	the county, the amount actually due thereon and constituting the default actually existing 
15.33 	in the conditions of the mortgage at the time of the commencement of the foreclosure 
15.34 	proceedings, including insurance, delinquent taxes, if any, upon the premises, interest to 
15.35 	date of payment, cost of publication and services of process or notices, attorney's fees not 
16.1 	exceeding $150 or one-half of the attorney's fees authorized by section 582.01, whichever 
16.2 	is greater, together with other lawful disbursements necessarily incurred in connection 
16.3 	with the proceedings by the party foreclosing, then, and in that event, the mortgage shall be 
16.4 	fully reinstated and further proceedings in such foreclosure shall be thereupon abandoned. 
16.5 		Subd. 2.Request by sheriff. Upon written request by the sheriff, the holder of the 
16.6 	mortgage or the holder's legal representative shall provide to the sheriff within seven days 
16.7 	of the date of the request by the sheriff to the foreclosing attorney: (1) the current payoff 
16.8 	amount, showing outstanding principal, interest, and a daily interest accrual amount, (2) 
16.9 	an itemized schedule of the current amounts necessary to reinstate the mortgage, (3) 
16.10 	the identity of the person or entity with authority to act on behalf of the holder of the 
16.11 	mortgage or the holder's legal representative. If the request by the sheriff is made greater 
16.12 	than seven days before the sheriff's sale and the holder of the mortgage or the holder's 
16.13 	legal representative fails to respond to the sheriff's request within seven days of the date 
16.14 	of the request, then the sheriff shall postpone the sheriff's sale for seven days and the 
16.15 	sheriff shall announce at the sheriff's sale a postponement of seven days. The sheriff shall 
16.16 	continue to postpone the sheriff's sale and announce the postponement until the holder of 
16.17 	the mortgage or the holder's legal representative responds to the sheriff's request and seven 
16.18 	days elapse before the sale is conducted. The postponement does not need to be published. 
16.19 	If the request by the sheriff is made seven days or less before the sheriff's sale, the holder 
16.20 	of the mortgage or the holder's representative shall make a good faith effort to respond to 
16.21 	the sheriff before the sheriff's sale, but the sheriff may conduct the sheriff's sale without a 
16.22 	response from the holder of the mortgage or the holder's legal representative.

16.23 	Sec. 18. Minnesota Statutes 2006, section 581.10, is amended to read:
16.24 	581.10 REDEMPTION BY MORTGAGOR, CREDITOR.
16.25 	The mortgagor, or those claiming under the mortgagor, within the time specified in 
16.26 	section 580.23 or 582.032, whichever applies, after the date of the order of confirmation, 
16.27 	may redeem the premises sold, or any separate portion thereof, by paying the amount bid 
16.28 	therefor, with interest thereon from the time of sale ~~at the rate provided to be paid on the~~ 
16.29 	~~mortgage debt, not to exceed eight percent per annum, and, if no rate to be provided in~~ 
16.30 	~~the mortgage,~~ at the rate ~~of six percent~~ stated in the certificate of sale, together with any 
16.31 	further sum which may be payable pursuant to section 582.03 and 582.031. Creditors 
16.32 	having a lien may redeem in the order and manner specified in section 580.24. 

16.33 	Sec. 19. Minnesota Statutes 2006, section 582.03, is amended to read:
16.34 	582.03 PURCHASER MAY PAY TAXES AND OTHER EXPENSES DUE.
17.1 		Subdivision 1.Allowable costs collectable upon redemption. The ~~purchaser at~~ 
17.2 	~~any~~holder of any sheriff's certificate of sale, ~~upon~~ from a foreclosure by advertisement 
17.3 	or action of a mortgage or lien or execution ~~or at any judicial sale~~, or the holder of any 
17.4 	certificate of redemption as a junior creditor during the period of redemption, may pay 
17.5 	and claim the following on redemption: any taxes or assessments on which any penalty 
17.6 	would otherwise accrue, and ~~may pay the premium upon any policy of insurance procured~~ 
17.7 	~~in renewal of any expiring policy upon~~ any costs of a hazard insurance policy for the 
17.8 	holder's interest in the mortgaged premises incurred for the period of holding the sheriff's 
17.9 	certificate, any costs incurred when an order to reduce a mortgagor's redemption period 
17.10 	under section 582.032 is entered; any fees paid to the county recorder, registrar of titles, 
17.11 	or sheriff to obtain or record the certificates of sale or redemption or notices of intention 
17.12 	to redeem, any deed tax paid to file a certificate of redemption, reasonable attorney fees 
17.13 	incurred after the foreclosure sale not to exceed one-half of the amount authorized by 
17.14 	section 582.01, ~~may pay~~ any costs incurred under section 582.031, and ~~may, in case~~ any 
17.15 	interest or installment of principal upon any prior or superior mortgage, lien, or contract 
17.16 	for deed ~~is~~ in default or ~~shall become~~ that becomes due during the period of redemption~~,~~ 
17.17 	~~pay the same, and,~~. In all such cases, the ~~sum~~ costs so paid and claimed due, with interest, 
17.18 	shall be a part of the sum required to be paid to redeem from such sale. No other costs, 
17.19 	fees, interest, or other amount may be added to the amount necessary to redeem.
17.20 		Subd. 2.Affidavit of allowable costs. ~~Such~~ Any payments made and claimed due 
17.21 	under subdivision 1 shall be proved by the affidavit of the ~~purchaser or the purchaser's~~
17.22 	holder of the sheriff's certificate or its agent or attorney, ~~stating the items~~ itemizing each of 
17.23 	the allowable costs and describing the premises~~, which must be filed for record with the~~ 
17.24 	~~county recorder or registrar of titles, and a copy thereof shall be furnished to the sheriff at~~ 
17.25 	~~least ten days before the expiration of the period of redemption.~~The affidavit shall be filed 
17.26 	with the sheriff of the county in which the sale was held at any time prior to expiration of 
17.27 	the mortgagor's redemption period. Upon written request by the sheriff, the holder of the 
17.28 	sheriff's certificate or certificate of redemption shall provide an affidavit of allowable costs 
17.29 	to the sheriff within seven days of the date of the request by the sheriff. If the holder of 
17.30 	the sheriff's certificate or certificate of redemption fails to respond to the sheriff's request 
17.31 	within seven days, then the sheriff may calculate a redemption amount pursuant to section 
17.32 	580.23, subdivision 1, and issue a certificate of redemption for that amount. If the time 
17.33 	allowed to redeem is less than seven days from the expiration of the redemption period, 
17.34 	then the sheriff shall make a reasonable effort to request the affidavit of allowable costs in 
17.35 	writing from the holder of the sheriff's certificate, its agent, or attorney before issuing a 
17.36 	certificate of redemption. If the affidavit of allowable costs is not provided more than one 
18.1 	business day before the expiration of the redemption period, then at any time one business 
18.2 	day or less before the expiration of the redemption period, the sheriff may calculate a 
18.3 	redemption amount pursuant to section 580.23, subdivision 1, and issue a certificate of 
18.4 	redemption for that amount. The amount calculated by the sheriff, absent malfeasance by 
18.5 	the sheriff, shall bind the holder of the sheriff's certificate even if the amount calculated by 
18.6 	the sheriff is less than the actual amount due.
18.7 		Subd. 3. Penalty for excessive costs. At any time within one year after the 
18.8 	expiration of the mortgagor's redemption period, the redeeming party, heirs, or assigns 
18.9 	may recover from the holder of the sheriff's certificate three times the amount of any sums 
18.10 	declared as costs or disbursements on the affidavit of allowable costs but not actually paid 
18.11 	by the holder, or three times the amount of any sums determined to exceed a reasonable 
18.12 	cost for the declared item, unless the disputed amounts are paid to the redeeming party, 
18.13 	heirs, or assigns prior to entry of judgment.

18.14 	Sec. 20. Minnesota Statutes 2006, section 582.031, is amended to read:
18.15 	582.031 LIMITED RIGHT OF ENTRY.
18.16 		Subdivision 1.Right of entry. If premises described in a mortgage or sheriff's 
18.17 	certificate are vacant or unoccupied, the holder of the mortgage or sheriff's certificate or the 
18.18 	holder's agents and contractors may, but is under no obligation to, enter upon the premises 
18.19 	to protect the premises from waste, until the holder of the mortgage or sheriff's certificate 
18.20 	receives notice that the premises are occupied. The holder of the mortgage or sheriff's 
18.21 	certificate does not become a mortgagee in possession by taking actions authorized under 
18.22 	this section. An affidavit of the sheriff, the holder of the mortgage or sheriff's certificate, or 
18.23 	a person acting on behalf of the holder, describing the premises and stating that the same 
18.24 	are vacant or unoccupied, is prima facie evidence of the facts stated in the affidavit and is 
18.25 	entitled to be recorded in the office of the county recorder or the registrar of titles in the 
18.26 	county where the premises are located, if it contains a legal description of the premises.
18.27 		Subd. 2.Authorized actions. The holder of the mortgage or sheriff's certificate 
18.28 	may take the following actions to protect the premises from waste~~:~~ or from falling below 
18.29 	minimum community standards for public safety and sanitation: make reasonable periodic 
18.30 	inspections, install or change locks on doors and windows, board windows, install an 
18.31 	alarm system, ~~provide a resident caretaker,~~ and otherwise prevent or minimize damage 
18.32 	to the premises from the elements, vandalism, trespass, or other illegal activities. If the 
18.33 	holder of the mortgage or sheriff's certificate installs or changes locks under this section, a 
18.34 	key to the premises must be promptly delivered to the mortgagor or any person lawfully 
18.35 	claiming through the mortgagor, upon request.
19.1 		Subd. 3.Costs. All costs incurred by the holder of the mortgage to protect the 
19.2 	premises from waste or from falling below minimum community standards for public 
19.3 	safety and sanitation may be added to the principal balance of the mortgage. The costs 
19.4 	may bear interest to the extent provided in the mortgage and may be added to the 
19.5 	redemption price if the costs are incurred after a foreclosure sale. If the costs are incurred 
19.6 	after a foreclosure sale, the ~~purchaser at the foreclosure sale~~ holder of any sheriff's 
19.7 	certificate of sale or certificate of redemption must comply with the provisions of section 
19.8 	582.03. The provisions of this section are in addition to, and do not limit or replace, any 
19.9 	other rights or remedies available to holders of mortgages and sheriff's certificates, at law 
19.10 	or under the applicable mortgage agreements. 

19.11 	Sec. 21. Minnesota Statutes 2006, section 582.032, subdivision 2, is amended to read:
19.12 		Subd. 2.Before foreclosure sale. Notwithstanding section 580.23 or 581.10, if at 
19.13 	any time before the foreclosure sale but not more than 30 days before the first publication 
19.14 	of the notice of sale, a court order is entered reducing the mortgagor's redemption period to 
19.15 	five weeks under subdivision 7, after the mortgaged premises have been sold as provided 
19.16 	in chapter 580 or 581, the mortgagor, and the mortgagor's personal representatives or 
19.17 	assigns, within five weeks after the sale under chapter 580, or within five weeks after 
19.18 	the date of the order confirming the sale under chapter 581, may redeem the mortgaged 
19.19 	premises as provided in section 580.23, subdivision 1, or 581.10, as applicable. ~~If an order~~ 
19.20 	~~is obtained after the first publication of the notice of sale, the five-week redemption period~~ 
19.21 	~~applies only if the notice of sale contained the statement required by section 580.04,~~ 
19.22 	~~clause (7).~~ All publications of notice of sale must include the statement required by 
19.23 	section 580.04, clause (7). The last publication of notice of sale prior to the sale under 
19.24 	chapter 580 must state if the foreclosing party will petition to have the redemption period 
19.25 	reduced as provided in this section.

19.26 	Sec. 22. Laws 2004, chapter 263, section 26, is amended to read:
19.27 	Sec. 26. EFFECTIVE DATE; EXPIRATION.
 19.28 	Sections 1 to 18, 22, 23, and 25 are effective August 1, 2004~~, and expire December~~ 
19.29 	~~31, 2009~~. Sections 19, 20, 21, and 24 are effective July 1, 2004.