Mortgage foreclosure process modification to allow for online sales and private selling officers

A bill for an act

relating to real property; modifying the mortgage foreclosure process to allow for

online sales and private selling officers; amending Minnesota Statutes 2024,

sections 580.032, subdivisions 6, 7; 580.04; 580.041, subdivisions 2, 2a; 580.042,

subdivision 3; 580.06; 580.09; 580.11; 580.12; 580.14; 580.19; 580.23, subdivision

1; 580.30, subdivision 2; 582.031; 582.032, subdivisions 4, 5, 7, 9; 582.041,

subdivision 2; 582.042, subdivisions 3, 4; 582.25; Minnesota Statutes 2025

Supplement, sections 580.07, subdivisions 1, 2; 580.10, by adding a subdivision;

580.24; 582.03, subdivisions 1, 2; proposing coding for new law in Minnesota

Statutes, chapter 580.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 580.032, subdivision 6, is amended to read:

Subd. 6.

Remedies.

If notice of the sale is not mailed in accordance with subdivision 4

to a person with a properly recorded request for notice, the person requesting notice has a

cause of action against the person foreclosing the mortgage for money damages for the

lesser of: (1) the equity in the mortgaged premises that would have been available to the

person if the person had redeemed; or (2) the value of the person's redeemable interest. The

value of a lienholder's redeemable interest is the amount due on and secured by the lien.

The person requesting notice has the burden of proving that the notice of the sale was not

mailed in accordance with subdivision 4 and that the person requesting notice had a valid

redeemable interest in the mortgaged premises, had measurable damages, had the financial

ability to redeem, and did not have actual notice of the sale at least 60 days before expiration

of the mortgagor's period of redemption. An action for damages resulting from failure to

mail notice must be brought within two years of the date of the
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sheriff's
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mortgage foreclosure
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sale.

Sec. 2.

Minnesota Statutes 2024, section 580.032, subdivision 7, is amended to read:

Subd. 7.

Exception to damage claim.

Notwithstanding subdivision 6, if notice was not

mailed in accordance with subdivision 4 to a person requesting notice, the requester has no

cause of action against the person foreclosing the mortgage if at least 60 days before the

mortgagor's period of redemption expires, a copy of the
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sheriff's
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certificate of sale is mailed

in the manner provided in this section to the person requesting notice.

Sec. 3.

Minnesota Statutes 2024, section 580.04, is amended to read:

580.04 REQUISITES OF NOTICE.

(a) Each notice shall specify or contain:

(1) the name of the mortgagor, the mortgagee, each assignee of the mortgage, if any,

and the original or maximum principal amount secured by the mortgage;

(2) the date of the mortgage, and when and where recorded, except where the mortgage

is upon registered land, in which case the notice shall state that fact, and when and where

registered;

(3) the amount claimed to be due on the mortgage on the date of the notice;

(4) a description of the mortgaged premises, conforming substantially to that contained

in the mortgage, and the commonly used street address of the mortgaged premises;

(5) the
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information about the sale, including:
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(i) the
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time and place of sale
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;
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(ii) if the sale is to take place online, the website where the sale will be held; and

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(iii) if the sale will be held by a private selling officer described in section 580.065, the

name and telephone number of the private selling officer
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;

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's personal

representatives or assigns; and

(7) for mortgaged premises described in section
582.032, subdivision 1
, the following

statement in capital letters: "THE TIME ALLOWED BY LAW FOR REDEMPTION BY

THE MORTGAGOR, THE MORTGAGOR'S PERSONAL REPRESENTATIVES OR

ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A JUDICIAL ORDER IS ENTERED

UNDER MINNESOTA STATUTES, SECTION
582.032
, DETERMINING, AMONG

OTHER THINGS, THAT THE MORTGAGED PREMISES ARE IMPROVED WITH A

RESIDENTIAL DWELLING OF LESS THAN FIVE UNITS, ARE NOT PROPERTY

USED IN AGRICULTURAL PRODUCTION, AND ARE ABANDONED."

(b) If the real estate is an owner-occupied, single-family dwelling, the notice must also

specify the date on or before which the mortgagor must vacate the property if the mortgage

is not reinstated under section
580.30
or the property redeemed under section
580.23
. The

notice must state that the time to vacate the property is 11:59 p.m. on the specified date.

Sec. 4.

Minnesota Statutes 2024, section 580.041, subdivision 2, is amended to read:

Subd. 2.

Content of foreclosure advice notice.

The foreclosure advice notice required

by this section must appear substantially as follows:

"Help For Homeowners in Foreclosure

The attorney preparing this foreclosure is:

.

(Attorney name, address,

phone)

It is being prepared for:

.

(Lender name, loss mitigation phone number)

AS OF [insert date], this lender says that you owe $[insert dollar amount] to bring your

mortgage up to date (or "reinstate" your mortgage). You must pay this amount, plus

interest and other costs, to keep your house from going through a
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sheriff's
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mortgage

foreclosure
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sale. The
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sheriff's
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mortgage foreclosure
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sale is scheduled for [insert date] at

[insert time] at [insert place].

Mortgage foreclosure is a complex process. People may contact you with advice and

offers to help "save" your home.

Remember:
It is important that you learn as much as you can about foreclosure and

your situation. Find out about all your options before you make any agreements with

anyone about the foreclosure of your home.

Getting Help

As soon as possible, you should contact your lender at the above number to talk about

things you might be able to do to prevent foreclosure. You should also consider contacting

the foreclosure prevention counselor in your area. A foreclosure prevention counselor

can answer your questions, offer free advice, and help you create a plan which makes

sense for your situation.

Contact the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466 or

www.hocmn.org or contact the United States Department of Housing and Urban

Development at 1-800-569-4287 or www.hud.gov to get the phone number and location

of the nearest certified counseling organization. Call today. The longer you wait, the

fewer options you may have for a desirable result."

Sec. 5.

Minnesota Statutes 2024, section 580.041, subdivision 2a, is amended to read:

Subd. 2a.

Content of notice of redemption rights.

The notice of redemption rights

required by this section must appear substantially as follows:

"
What Happens After the Foreclosure Sale

After the
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sheriff's
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mortgage foreclosure
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sale, you have the right to "redeem." Redeem means

that you pay the amount bid for your house at the
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sheriff's
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mortgage foreclosure
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sale, plus

interest and costs, to keep your house. You can keep living in your home for a period of

time after the foreclosure sale. This is called a "redemption period." The redemption period

is [insert number of months] months after the
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sheriff's
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mortgage foreclosure
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sale.

At the end of the redemption period, if you do not redeem or sell, you will have to leave

your home. If you do not leave, the person or company that bid on your home at the
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sheriff's
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mortgage foreclosure
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sale has the right to file an eviction against you in court.

Be Careful of Foreclosure Scams

Be careful! After the foreclosure sale, people may approach you to buy your house or

ask you to transfer your house to them for little or no money.

Before you give up the rights to your house or sign any documents (including a deed),

be sure you know how much the house sold for at the
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sheriff's
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mortgage foreclosure
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sale

and decide if you can save the house by paying the amount of the bid, plus interest and

costs.

How to Find Out How Much Your House Sold For at the Foreclosure Sale

The amount you need to pay to redeem your house may be less than the amount you

owed on the mortgage before the sale. You can learn what this amount is (and who the

winning bidder at the sale was) by attending the
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sheriff's
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mortgage foreclosure
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sale or by

contacting the sheriff's office after the sale.

You Can Also Sell Your House

During the redemption period, if you sell your home, you must sell it for enough to pay

off the winning bidder from the
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sheriff's
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mortgage foreclosure
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sale and pay interest, fees,

and other claims against the property. If there is any money left from the sale of the house

after all these debts are paid, you can keep the money. You can also enter into a "short sale."

A short sale is an agreement in which the lender agrees to accept less than the full amount

you owe on the mortgage.

Get More Information and Advice

For more information and advice, contact an attorney or a mortgage foreclosure

prevention counselor. You can find a mortgage foreclosure prevention counselor by

contacting the Minnesota Home Ownership Center at 651-659-9336 or 866-462-6466 or

www.hocmn.org or contact the United States Department of Housing and Urban Development

at 1-800-569-4287 or www.hud.gov to get the phone number and location of the nearest

certified counseling organization."

Sec. 6.

Minnesota Statutes 2024, section 580.042, subdivision 3, is amended to read:

Subd. 3.

Content of notice.

The notice required by this section must appear substantially

as follows.

"
Foreclosure: Advice to Tenants

You are renting in a property that is in foreclosure. Minnesota law requires that we send

you this notice about the foreclosure process. Please read it carefully.

The mortgage foreclosure does not change the terms of your lease. You and your

landlord must continue to follow the terms of your lease, including the rights and

responsibilities of you and your landlord. You must keep paying rent unless you have

a legal reason to withhold it. Your landlord must keep the property repaired. Utilities

must be paid under the terms of your lease or under state law.

Moving out of the property early might be a violation of your lease.
The date of the
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sheriff's
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mortgage
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foreclosure sale is in the attached foreclosure notice. In most cases you

do not need to move from the property before the
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sheriff's
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mortgage
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foreclosure sale. Read

your lease to see if it says anything about foreclosure and about the rights you may have if

the property is in foreclosure. If you have a month-to-month lease, the foreclosure notice

does not change the rules for ending your lease. You and your landlord must still give legal

notice to end your lease.

In most cases, your landlord has six months after the date of the
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sheriff's
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mortgage
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foreclosure sale to pay off the mortgage. This is called the "redemption period." Read the

attached foreclosure notice to determine the length of the redemption period. You cannot

be asked to move during the redemption period except for lease violations or if your lease

expires during the redemption period. If your landlord stops the foreclosure, you may not

have to move from the property. If your landlord does not stop the foreclosure, there will

be a new owner of the property at the end of the redemption period.

The new owner may have the legal right to ask you to move even if your lease is not

over. But, the new owner must still give you a written notice stating that the new owner

wants you to move.

Do not wait to get information about foreclosure. Mortgage foreclosure is a complicated

process. It is important you learn about your rights as a renter when there is a mortgage

foreclosure. You may have fewer options if you wait too long. There are government agencies

and nonprofit organizations that you may contact for helpful information about the foreclosure

process. For the name and telephone number of an organization near you, please call the

legal aid office or bar association office in your county. You also can find information on

tenant rights at HOME Line at (866) 866-3546 and Law Help Minnesota at

http://www.LawHelpMN.org. The state of Minnesota does not guarantee the advice of these

agencies and organizations."

Sec. 7.

Minnesota Statutes 2024, section 580.06, is amended to read:

580.06 SALE, HOW AND BY WHOM MADE.

The sale shall be made by the sheriff
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or
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,
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the sheriff's deputy
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, or the private selling officer

appointed by the mortgagee as provided in section 580.065,
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at public venue to the highest

bidder, in the county in which the premises to be sold, or some part thereof, are situated,

between 9:00 a.m. and 4:00 p.m.
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or online as provided in section 580.31.
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Sec. 8.

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[580.065] PRIVATE SELLING OFFICER APPOINTMENT.

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(a) The mortgagee may, in its sole discretion, appoint a private selling officer to conduct

the sale of the property at a public venue within the county in which the premises to be sold

is situated or online. A private selling officer is a person or entity licensed as a real estate

broker or salesperson under chapter 82 or an auctioneer under chapter 330 and whose license

is in good standing.

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(b) If the mortgagee elects to appoint a private selling officer to conduct the sale, the

mortgagee is solely responsible for any fees or costs due to the private selling officer for

services rendered. No fees or costs associated with the private selling officer may, through

any mechanism, be passed to the mortgagor.

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(c) If a private selling officer is appointed as provided by this section, all tasks necessary

to effectuate the foreclosure sale remain with the sheriff or sheriff's deputy aside from the

conducting of the sale, which shall be undertaken by the private selling officer duly appointed

under this section.

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(d) Upon completing a foreclosure sale by the private selling officer, the private selling

officer shall provide to the sheriff of the county in which the property is situated:

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(1) the address of the property sold;

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(2) the time and place of the sale;

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(3) the price at which the property was sold;

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(4) the name of the purchaser and vesting information;

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(5) contact information for the purchaser, including telephone number and mailing

address;

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(6) the purchase funds collected from the buyer; and

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(7) a copy of the certificate of sale provided to the purchaser.

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Sec. 9.

Minnesota Statutes 2025 Supplement, section 580.07, subdivision 1, is amended

to read:

Subdivision 1.

Postponement by mortgagee.

(a) The sale may be postponed, from time

to time, by the party conducting the foreclosure. The party requesting the postponement

must, at the party's expense:

(1) publish, only once, a notice of the postponement and the rescheduled date of the sale,

if known, as soon as practicable, in the newspaper in which the notice under section
580.03

was published; and

(2) send by first class mail to the occupant, postmarked within three business days of

the postponed sale, notice:

(i) of the postponement; and

(ii) if known, of the rescheduled date of the sale and the date on or before which the

mortgagor must vacate the property if the
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sheriff's
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mortgage foreclosure
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sale is not further

postponed, the mortgage is not reinstated under section
580.30
, the property is not redeemed

under section
580.23
, or the redemption period is not reduced under section
582.032
. The

notice must state that the time to vacate the property is 11:59 p.m. on the specified date.

(b) If the rescheduled date of the sale is not known at the time of the initial publication

and notice to the occupant of postponement, the foreclosing party must, at its expense if

and when a new date of sale is scheduled:

(1) publish, only once, notice of the rescheduled date of the sale, as soon as practicable,

in the newspaper in which the notice under section
580.03
and the notice of postponement

under paragraph (a) was published; and

(2) send by first class mail to the occupant, postmarked within ten days of the rescheduled

sale, notice:

(i) of the date of the rescheduled sale; and

(ii) of the date on or before which the mortgagor must vacate the property if the mortgage

is not reinstated under section
580.30
or the property redeemed under section
580.23
. The

notice must state that the time to vacate the property is 11:59 p.m. on the specified date.

(c) The right of a mortgagee to postpone a foreclosure sale under this section applies to

a foreclosure by action taken under chapter 581.

new text begin

(d) If the sale is to take place online as contemplated in section 580.31, in addition to

the publication required in this subdivision, the rescheduled date of sale must also be

published on the website hosting the sale.

new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, section 580.07, subdivision 2, is amended

to read:

Subd. 2.

Postponement by mortgagor or owner.

(a) If all or a part of the property to

be sold is classified as homestead under section
273.124
and contains one to four dwelling

units, the mortgagor or owner may, in the manner provided in this subdivision, postpone

the sale to the first date that is not a Saturday, Sunday, or legal holiday and is:

(1) five months after the originally scheduled date of sale if the original redemption

period was six months under section
580.23
, subdivision 1; or

(2) 11 months after the originally scheduled date of sale if the original redemption period

was 12 months under section
580.23, subdivision 2
. To postpone a foreclosure sale pursuant

to this subdivision, at any time after the first publication of the notice of mortgage foreclosure

sale under section
580.03
but at least 15 days prior to the scheduled sale date specified in

that notice, the mortgagor shall: (i) execute a sworn affidavit in the form set forth in

subdivision 3, (ii) record the affidavit in the office of each county recorder and registrar of

titles where the mortgage was recorded, and (iii) file with the
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sheriff
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person
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conducting the

sale and deliver to the attorney foreclosing the mortgage a copy of the recorded affidavit,

showing the date and office in which the affidavit was recorded. Recording of the affidavit

and postponement of the foreclosure sale pursuant to this subdivision shall automatically

reduce the mortgagor's redemption period under section
580.23
to five weeks. The

postponement of a foreclosure sale pursuant to this subdivision does not require any change

in the contents of the notice of sale, service of the notice of sale if the occupant was served

with the notice of sale prior to postponement under this subdivision, or publication of the

notice of sale if publication was commenced prior to postponement under this subdivision,

notwithstanding the service and publication time periods specified in section
580.03
, but

the
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sheriff's
deleted text end
certificate of sale shall indicate the actual date of the foreclosure sale and the

actual length of the mortgagor's redemption period. No notice of postponement need be

published. An affidavit complying with subdivision 3 shall be prima facie evidence of the

facts stated therein, and shall be entitled to be recorded. The right to postpone a foreclosure

sale pursuant to this subdivision may be exercised only once, regardless whether the

mortgagor reinstates the mortgage prior to the postponed mortgage foreclosure sale.

(b) If the automatic stay under United States Code, title 11, section 362, applies to the

mortgage foreclosure after a mortgagor or owner requests postponement of the
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sheriff's
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mortgage foreclosure
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sale under this section, then when the automatic stay is no longer

applicable, the mortgagor's or owner's election to shorten the redemption period to five

weeks under this section remains applicable to the mortgage foreclosure.

(c) Except for the circumstances set forth in paragraph (b), this section does not reduce

the mortgagor's redemption period under section
580.23
for any subsequent foreclosure of

the mortgage.

(d) The right of a mortgagor or owner to postpone a foreclosure sale under this section

applies to a foreclosure by action taken under chapter 581.

Sec. 11.

Minnesota Statutes 2024, section 580.09, is amended to read:

580.09 FORECLOSURE OF INSTALLMENT; SALE; PROCEEDS;

REDEMPTION.

Where a mortgage is given to secure the payment of money by installments, each

installment, either for principal or interest, or both, as is due at any time, may be taken and

deemed to be a separate and independent mortgage, and such mortgage for each such

installment may be foreclosed by advertisement or by action, in the same manner and with

like effect as if a separate mortgage were given for each of such installments, and such

foreclosure may be made and sale had subject to the installments yet to become due upon

the mortgage; and a redemption from any such sale shall have the like effect as if the sale

for such installment had been made upon an independent subsequent mortgage; provided

in such cases the attorney's fee on the foreclosure so made shall not exceed the amount

permitted by law in case of a mortgage securing the amount of the debt then due on such

foreclosure. The proceeds of the sale shall be applied first in payment of the costs of the

foreclosure sale, and of the installment due, with interest thereon, taxes and insurance

premiums paid, if any, and then towards the payment of the residue of the sum secured by

such mortgage, and not due and payable at the time of such sale; and, if such residue does

not bear interest, such application shall be made with rebate of the legal interest for the time

during which the residue shall not be due and payable; and the surplus, if any, shall be paid

to the subsequent lienors, if any, in the order of their priority, and then to the owner of the

equity of redemption, the owner's legal representatives or assigns. In case of redemption

from any sale herein authorized, at the option of the redemptioner, the whole amount

remaining unpaid on the mortgage, with interest and other items, if any, which have become

part of the amount secured by the lien of the mortgage, may be included in the amount paid

on redemption and, in such event, the redemption so made shall have like effect as if the

foreclosure sale had been made for the entire amount secured by the mortgage, including

such additional items.

Before any sale herein authorized, the holder of the mortgage shall file with the sheriff
new text begin

or private sale officer
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a verified itemized statement in writing showing the entire amount

remaining unpaid on the mortgage, including taxes and insurance premiums paid and other

items which have become part of the amount secured, and the rate of interest to accrue on

same, which statement shall be subject to public inspection and shall be read by the sheriff
new text begin

or sale officer
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at the sale, immediately after reading the notice of sale. The certificate of

sale shall set forth correctly, in addition to the amount of sale, the remaining amount still

unpaid on and secured by the mortgage, subject to which the sale is made, and the rate of

interest to accrue on same. If, during the time to redeem from the sale, any additional or

other item, other than interest at the rate so stated in the certificate, shall attach to such

amount subject to which the sale was made, or any change shall occur in such amount or

the rate of interest thereon, the facts with respect thereto shall be set forth by affidavit, made

and recorded, and a copy furnished the sheriff
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or sale officer
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, in accordance with the

provisions of section
582.03
, and the provisions of that section shall apply thereto.

Sec. 12.

Minnesota Statutes 2025 Supplement, section 580.10, is amended by adding a

subdivision to read:

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Subd. 6.

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Private selling officer sale.

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If a private selling officer conducted the sale, all

sale proceeds and surplus funds shall be paid over to the sheriff of the county in which the

property resides and handled in accordance with this section.

new text end

Sec. 13.

Minnesota Statutes 2024, section 580.11, is amended to read:

580.11 MORTGAGEE OR ASSIGNEE MAY PURCHASE.

The mortgagee, the mortgagee's assignee, or the legal representative of either or both,

may
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submit a maximum bid in advance and
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fairly and in good faith purchase the premises

so advertised, or any part thereof, at such sale.

Sec. 14.

Minnesota Statutes 2024, section 580.12, is amended to read:

580.12 CERTIFICATE OF SALE; RECORD; EFFECT.

When any sale of real property is made under a power of sale contained in any mortgage,

the officer shall make and deliver to the purchaser a certificate, executed in the same manner

as a conveyance, containing:

(1) a description of the mortgage;

(2) a description of the property sold;

(3) the price paid for each parcel sold;

(4) the time and place of the sale, and the name of the purchaser;

(5) the interest rate in effect on the date of the
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sheriff's
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mortgage foreclosure
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sale; and

(6) the time allowed by law for redemption, provided that if the redemption period stated

in the certificate is five weeks and a longer redemption period was stated in the published

notice of foreclosure sale, a certified copy of the court order entered under section
582.032
,

authorizing reduction of the redemption period to five weeks, must be attached to the

certificate.

A certificate which states a five-week redemption period must be recorded within ten

days after the sale; any other certificate must be recorded within 20 days after the sale.

When so recorded, upon expiration of the time for redemption, the certificate shall operate

as a conveyance to the purchaser or the purchaser's assignee of all the right, title, and interest

of the mortgagor in and to the premises named therein at the date of such mortgage, without

any other conveyance. A certificate must not contain a time allowed for redemption that is

less than the time specified by section
580.23
,
582.032
, or
582.32
, whichever applies.

Sec. 15.

Minnesota Statutes 2024, section 580.14, is amended to read:

580.14 EXECUTION AFTER EXPIRATION OF TERM.

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Where
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If the sale is to be conducted by the sheriff or a deputy of the sheriff and
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the term

of office of the sheriff or deputy who made the sale expires within 20 days thereafter, and

before executing the certificate required by law, that sheriff or deputy may execute and

acknowledge the same in like manner and with like effect as if the term had not expired.

Sec. 16.

Minnesota Statutes 2024, section 580.19, is amended to read:

580.19 CERTIFICATE AS EVIDENCE.

Every
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sheriff's
deleted text end
certificate of sale made under a power to sell contained in a mortgage

shall be prima facie evidence that all the requirements of law in that behalf have been

complied with, and prima facie evidence of title in fee thereunder in the purchaser at such

sale, the purchaser's heirs or assigns, after the time for redemption therefrom has expired.

Sec. 17.

Minnesota Statutes 2024, section 580.23, subdivision 1, is amended to read:

Subdivision 1.

Six-month redemption period.

(a) When lands have been sold in

conformity with the preceding sections of this chapter, the mortgagor, the mortgagor's

personal representatives or assigns, within six months after such sale, except as otherwise

provided in subdivision 2 or section
582.032
or
582.32
, may redeem such lands, as hereinafter

provided, by paying the sum of money for which the same were sold, with interest from the

time of sale at the rate provided to be paid on the mortgage debt as stated in the certificate

of sale and, if no rate be provided in the certificate of sale, at the rate of six percent per

annum, together with any further sums which may be payable as provided in sections
582.03

and
582.031
.

(b) Delivery of funds and documents for redemption must be made at the normal place

of business of the recipient, on days other than Sunday, Saturday, and legal holidays, between

the hours of 9:00 a.m. and 4:00 p.m.

(c) Regardless of the length of the redemption period, the sheriff may accept a specific

sum less than the full amount due for redemption by the mortgagor upon receipt by the

sheriff, prior to expiration of the redemption period, of written confirmation from the holder

of the
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sheriff's
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certificate
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of sale
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or the attorney for the holder of the
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sheriff's
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certificate
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of

sale
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that the holder of the
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sheriff's
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certificate
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of sale
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has agreed to accept a specific sum less

than the full amount due for redemption.

Sec. 18.

Minnesota Statutes 2025 Supplement, section 580.24, is amended to read:

580.24 REDEMPTION BY CREDITOR.

(a) If no redemption is made by the mortgagor, the mortgagor's personal representatives

or assigns, the most senior creditor having a legal or equitable lien upon the mortgaged

premises, or some part of it, subsequent to the foreclosed mortgage, may redeem within 14

days after the expiration of the redemption period determined under section
580.23
or

582.032
, whichever is applicable; and each subsequent creditor having a lien may redeem,

in the order of priority of their respective liens, within 14 days after the time allowed the

prior lienholder by paying the amount required under this section. However, no creditor is

entitled to redeem unless, one week or more prior to the expiration of the period allowed

for redemption by the mortgagor, the creditor:

(1) records with each county recorder and registrar of titles where the foreclosed mortgage

is recorded a notice of the creditor's intention to redeem;

(2) records with each county recorder and registrar of titles where the notice of the

creditor's intention to redeem is recorded all documents necessary to create the lien on the

mortgaged premises and to evidence the creditor's ownership of the lien, including a copy

of any money judgment necessary to create the lien; and

(3) after complying with clauses (1) and (2), delivers to the sheriff
deleted text begin
who conducted the

foreclosure sale or the sheriff's successor in office
deleted text end
new text begin
of the county in which the premises was

sold at the mortgage foreclosure sale
new text end
a copy of each of the documents required to be recorded

under clauses (1) and (2), with the office, date and time of filing for record stated on the

first page of each document.

The sheriff shall maintain for public inspection all documents delivered to the sheriff

and shall note the date of delivery on each document. The sheriff may charge a fee of $100

for the documents delivered to the sheriff relating to each lien. The sheriff shall maintain

copies of documents delivered to the sheriff for a period of six months after the end of the

mortgagor's redemption period.

(b) Saturdays, Sundays, legal holidays, and the first day following the expiration of the

prior redemption period must be included in computing the 14-day redemption period. When

the last day of the period falls on Saturday, Sunday, or a legal holiday, that day must be

omitted from the computation. The order of redemption by judgment creditors subsequent

to the foreclosed mortgage shall be determined by the order in which their judgments were

entered as memorials on the certificate of title for the foreclosed premises or docketed in

the office of the district court administrator if the property is not registered under chapter

508
or
508A
, regardless of the homestead status of the property. All mechanic's lienholders

who have coordinate liens shall have one combined 14-day period to redeem.

(c) The amount required to redeem from the holder of the
deleted text begin
sheriff's
deleted text end
certificate of sale is

the amount required under section
580.23
. The amount required to redeem from a creditor

holding a certificate of redemption is:

(1) the amount paid to redeem as shown on the certificate of redemption; plus

(2) interest on that amount to the date of redemption at the rates stated on the certificate

of sale and the affidavit provided by section
580.25
, clause (3), or six percent if no rate is

otherwise stated; plus

(3) the amount claimed due on the creditor's lien, as shown on the affidavit under section

580.25
, clause (3).

(d) If the sheriff determines there is a dispute or question of validity about a redemption,

the sheriff may accept the amount required to redeem, together with documents in support

of the redemption, from one or more creditors competing for or claiming a right to redeem,

without executing and delivering a certificate of redemption, and the sheriff may commence

an action under section
580.28
at no cost to the sheriff. A creditor subject to a dispute or

question of validity about a redemption may submit the matter for adjudication of the court

under section
580.28
. If the sheriff does not execute and deliver a certificate of redemption

under this section, all further junior creditor redemption periods are stayed until determined

by the court, and all junior creditors who have recorded notices of intent to redeem should

be included in the action under section
580.28
. The amount required to redeem may be paid

to the holder of the
deleted text begin
sheriff's
deleted text end
certificate of sale or the certificate of redemption, as the case

may be, or to the sheriff for the holder.

Sec. 19.

Minnesota Statutes 2024, section 580.30, subdivision 2, is amended to read:

Subd. 2.

Request by sheriff
new text begin
or sale officer
new text end
.

Upon written request by the sheriff
new text begin
or sale

officer
new text end
, the holder of the mortgage or the holder's legal representative shall provide to the
new text begin

requesting
new text end
sheriff
new text begin
or sale officer
new text end
within seven days of the date of the request by the sheriff
new text begin

or sale officer
new text end
to the foreclosing attorney: (1) the current payoff amount, showing outstanding

principal, interest, and a daily interest accrual amount, (2) an itemized schedule of the current

amounts necessary to reinstate the mortgage, and (3) the identity of the person or entity

with authority to act on behalf of the holder of the mortgage or the holder's legal

representative. If the holder of the mortgage or the holder's legal representative fails to

respond to the sheriff's
new text begin
or sale officer's
new text end
request within seven days of the date of the request,

the sheriff
new text begin
or sale officer
new text end
shall postpone the
deleted text begin
sheriff's
deleted text end
new text begin
mortgage foreclosure
new text end
sale and the

sheriff
new text begin
or sale officer
new text end
shall announce at the
deleted text begin
sheriff's
deleted text end
new text begin
mortgage foreclosure
new text end
sale the

postponement of the sale. The postponement does not need to be published. If the request

by the sheriff
new text begin
or sale officer
new text end
is made seven days or less before the
deleted text begin
sheriff's
deleted text end
new text begin
mortgage

foreclosure
new text end
sale, the holder of the mortgage or the holder's representative shall make a good

faith effort to respond to the sheriff
new text begin
or sale officer
new text end
before the
deleted text begin
sheriff's
deleted text end
new text begin
mortgage foreclosure
new text end

sale, but the sheriff
new text begin
or sale officer
new text end
may conduct the
deleted text begin
sheriff's
deleted text end
new text begin
mortgage foreclosure
new text end
sale

without a response from the holder of the mortgage or the holder's legal representative.

Sec. 20.

new text begin

[580.31] ONLINE SALES FOR FORECLOSURE BY ADVERTISEMENT.

new text end

new text begin

(a) The private sale officer making a mortgage foreclosure sale under this chapter may

conduct the sale online in accordance with this section.

new text end

new text begin

(b) The private sale officer making the mortgage foreclosure sale may engage a third-party

online sale provider to assist with performance of the online sale. Any third-party online

sale provider engaged by a private sale officer making the sale must be acquired through a

process that confirms that the provider meets the requirements in this section.

new text end

new text begin

(c) For purposes of this section, "third-party online sale provider" means any sale platform

or service provider engaged by the private sale officer making the sale to assist with

conducting the sale online in accordance with state law.

new text end

new text begin

(d) The private sale officer making the mortgage foreclosure sale may charge an additional

fee not to exceed $350 as a reasonable expense of the sale for costs associated with

conducting the sale online. The third-party online sale provider may not charge any additional

fee or buyer's premium for providing services in connection with the sale.

new text end

new text begin

(e) If the private sale officer making the mortgage foreclosure sale elects to conduct the

sale both online and in person, all bids accepted during the sale shall be simultaneously

announced at the in-person sale and visible to the public online at the time the bids are

placed. Any maximum bid amounts provided by bidders ahead of the sale shall not be visible

to the public until the bid is placed.

new text end

new text begin

(f) There shall be no fee charged to the public to view properties for sale online or to

participate in any sale in person or online.

new text end

new text begin

(g) Any third-party online sale provider may collect sale funds at the time of the mortgage

foreclosure sale. The third-party provider must provide all sale funds to the private sale

officer making the sale within two business days after the conclusion of the sale.

new text end

new text begin

(h) The private sale officer making the sale shall require a person seeking to bid

electronically online to complete a registration process that includes providing information

relevant to properly identify the bidder, contact the bidder, and complete the sale of the

property as determined by the private sale officer making the sale. The information must

include:

new text end

new text begin

(1) if the person registering to bid online is an individual, the individual's name, email

address, and telephone number; or

new text end

new text begin

(2) if the person registering to bid online is an entity, the entity's legal name, name of

an individual contact person for the entity, email address, and telephone number.

new text end

new text begin

The private sale officer making the sale online shall require all bidders who wish to

participate in bidding online to have the bidder's identity verified through an identification

verification process before a bid can be placed online, including verification through a

government issued ID, biometric verification, or other method of verification as determined

by the private sale officer conducting the sale. If a bidder's identity cannot be verified through

the verification process, then the bidder may be prohibited from participating in the online

sale.

new text end

new text begin

(i) The purchaser at an online mortgage foreclosure sale shall submit to the private sale

officer conducting the sale the information required by this paragraph and pay the full

balance. The purchaser shall provide all required information to be checked against the

federal Office for Foreign Assets Control sanction list by the private sale officer conducting

the sale prior to finalizing the purchase of the property. The private sale officer conducting

the sale shall check the winning purchaser against the sanction list before the certificate of

sale is provided, including the individual's name, physical mailing address, email address,

and any other information requested by the person conducting the sale in order to adequately

identify and contact the purchaser or entity's legal name, trade name if different from legal

name, state and date of formation, mailing address, proof of business registration with the

state of Minnesota, the name of an individual contact person for the entity, and email address

and telephone number for that individual. The private sale officer making the sale may

require a sale deposit prior to allowing any bidder to participate in the online mortgage

foreclosure sale. The purchaser must pay the full winning bid amount due for the purchase

to the private sale officer making the sale within 24 hours after the end of the sale, unless

otherwise set forth by the private sale officer making the sale, in the form designated by the

private sale officer making the sale. If the purchaser fails to provide the required information

or purchase funds within the time period designated in this section, the purchaser is in default

and the private sale officer making the sale may deem the sale incomplete and proceed with

postponing and rescheduling the sale in accordance with section 580.07, and the sale deposit,

if any, shall be forfeited by the purchaser and applied to the costs of the foreclosure.

new text end

new text begin

(j) Any private sale officer conducting a sale online must maintain evidence of satisfactory

internal informational security controls that meet industry standards and are maintained by

the platform used to conduct online sales. Such evidence of satisfactory internal controls

regarding data security may be in the form of an annual Systems and Organization Controls

2 Report certification, with the ability to test and report on the design effectiveness and

operating effectiveness of the platform's controls, or another form ensuring performance

and security requirements are met.

new text end

new text begin

(k) The private sale officer conducting the mortgage foreclosure sale and any third-party

online sale provider may engage in activities to promote and market the sale to encourage

and facilitate bidding, including listing the property on real estate websites and conducting

email campaigns. The private sale officer conducting the sale or the third-party online sale

provider is solely responsible for paying all fees or expenses incurred in connection with

such activities.

new text end

new text begin

(l) For mortgage foreclosure sales occurring only online, the sale must be open for

bidding for a minimum of 24 hours and bidding shall be open to all interested parties for

the entire duration of the bidding period.

new text end

Sec. 21.

Minnesota Statutes 2025 Supplement, section 582.03, subdivision 1, is amended

to read:

Subdivision 1.

Allowable costs collectable upon redemption.

The holder of any
deleted text begin
sheriff's
deleted text end

certificate of sale, from a foreclosure by advertisement or action of a mortgage or lien or

execution, or the holder of any certificate of redemption as a junior creditor during the

period of redemption, may pay and claim the following on redemption: any taxes or

assessments on which any penalty would otherwise accrue, and any costs of a hazard

insurance policy for the holder's interest in the mortgaged premises incurred for the period

of holding the
deleted text begin
sheriff's
deleted text end
certificate, any costs incurred when an order to reduce a mortgagor's

redemption period under section
582.032
is entered, including costs and disbursements

awarded under section
582.032, subdivision 9
, any fees paid to the county recorder, registrar

of titles,
deleted text begin
or
deleted text end
sheriff
new text begin
, or private sale officer
new text end
to obtain or record the certificates of sale or

redemption or notices of intention to redeem, any reasonable fees paid to licensed real estate

brokers for broker price opinions or to licensed appraisers for appraisals, any deed tax paid

to file a certificate of redemption, reasonable attorney fees incurred after the foreclosure

sale not to exceed one-half of the amount authorized by section
582.01
, any costs incurred

under section
582.031
new text begin
or 580.31
new text end
, and any interest or installment of principal upon any prior

or superior mortgage, lien, or contract for deed in default or that becomes due during the

period of redemption. In all such cases, the costs so paid and claimed due, with interest

from the date of payment at the rate stated in the certificate of sale or at six percent if no

rate is stated, shall be a part of the sum required to be paid to redeem from such sale. No

other costs, fees, interest, or other amount may be added to the amount necessary to redeem.

Sec. 22.

Minnesota Statutes 2025 Supplement, section 582.03, subdivision 2, is amended

to read:

Subd. 2.

Affidavit of allowable costs.

Any payments made and claimed due under

subdivision 1 shall be proved by the affidavit of the holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end

or its agent or attorney, itemizing each of the allowable costs and the date of payment and

describing the premises. The affidavit must be filed with the sheriff of the county in which

the sale was held at any time prior to expiration of the mortgagor's redemption period. Upon

written request by the sheriff, the holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
or certificate of

redemption shall provide an affidavit of allowable costs to the sheriff within seven days of

the date of the request by the sheriff. If the mortgagor does not redeem within seven days

after the affidavit is filed, the holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
may file a supplemental

affidavit if additional allowable costs are incurred during the redemption period. If the

holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
or certificate of redemption fails to respond to the

sheriff's request within seven days, the sheriff may calculate a redemption amount pursuant

to section
580.23, subdivision 1
, and issue a certificate of redemption for that amount. If

the time allowed to redeem is less than seven days from the expiration of the redemption

period, the sheriff shall make a reasonable effort to request the affidavit of allowable costs

in writing from the holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
, its agent, or attorney before

issuing a certificate of redemption. If the affidavit of allowable costs is not provided more

than one business day before the expiration of the redemption period, at any time one

business day or less before the expiration of the redemption period, the sheriff may calculate

a redemption amount pursuant to section
580.23, subdivision 1
, and issue a certificate of

redemption for that amount. The amount calculated by the sheriff, absent malfeasance by

the sheriff, binds the holder of the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
even if the amount calculated

by the sheriff is less than the actual amount due.

Sec. 23.

Minnesota Statutes 2024, section 582.031, is amended to read:

582.031 LIMITED RIGHT OF ENTRY; DUTY TO ENTER AND PROTECT

PREMISES.

Subdivision 1.

Right of entry.

(a) If premises described in a mortgage or
deleted text begin
sheriff's
deleted text end

certificate
new text begin
of sale
new text end
are vacant or unoccupied, the holder of the mortgage or
deleted text begin
sheriff's
deleted text end
certificate
new text begin

of sale
new text end
or the holder's agents and contractors may enter upon the premises to protect the

premises from waste and trespass, until the holder of the mortgage or
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of

sale
new text end
receives notice that the premises are occupied. The holder of the mortgage or
deleted text begin
sheriff's
deleted text end

certificate
new text begin
of sale
new text end
does not become a mortgagee in possession by taking actions authorized

or required under this section. An affidavit of the sheriff, the building or housing regulatory

authority of a municipality in which the property is located, the holder of the mortgage or
deleted text begin

sheriff's
deleted text end
certificate
new text begin
of sale
new text end
, or a person acting on behalf of the holder, describing the premises

and stating that the same are vacant or unoccupied, is prima facie evidence of the facts stated

in the affidavit and is entitled to be recorded in the office of the county recorder or the

registrar of titles in the county where the premises are located, if it contains a legal description

of the premises.

(b) If the holder of a
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
knows that there is prima facie evidence

of abandonment of the property, as described in section
582.032, subdivision 7
, clauses (1)

to (6), the holder or the holder's agents:

(1) shall enter the premises and make reasonable periodic inspections, install or change

the locks on all doors, install locks on all windows that do not have locks, and ensure that

any existing window locks are functioning properly; and

(2) may, to protect the premises from waste, trespass, or falling below minimum

community standards for public safety and sanitation, enter the premises and board windows,

doors, and other openings; install and operate an alarm system; and otherwise prevent or

minimize damage to the premises from the elements, vandalism, trespass, or other illegal

activity.

(c) Upon an installation or change of locks as required by this section, the holder of a
deleted text begin

sheriff's
deleted text end
certificate
new text begin
of sale
new text end
must deliver a key to the premises to the mortgagor or any person

lawfully claiming through the mortgagor, upon request.

Subd. 2.

Authorized actions.

The holder of the mortgage or
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end

may take the following actions to protect the premises from waste, trespass, or from falling

below minimum community standards for public safety and sanitation: make reasonable

periodic inspections; install or change locks on doors and windows; board windows, doors,

and other openings; install and operate an alarm system; and otherwise prevent or minimize

damage to the premises from the elements, vandalism, trespass, or other illegal activities.

If the holder of the mortgage or
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
installs or changes locks under

this section, a key to the premises must be promptly delivered to the mortgagor or any person

lawfully claiming through the mortgagor, upon request.

Subd. 3.

Costs.

All costs incurred by the holder of the mortgage or
deleted text begin
sheriff's
deleted text end
certificate
new text begin

of sale
new text end
to protect the premises from waste or trespass or from falling below minimum

community standards for public safety and sanitation may be added to the principal balance

of the mortgage or the costs allowable upon redemption. The costs may bear interest to the

extent provided in the mortgage and may be added to the redemption price if the costs are

incurred after a foreclosure sale. If the costs are incurred after a foreclosure sale, the holder

of any
deleted text begin
sheriff's
deleted text end
certificate of sale or certificate of redemption must comply with the provisions

of section
582.03
. The provisions of this section are in addition to, and do not limit or

replace, any other rights or remedies available to holders of mortgages and
deleted text begin
sheriff's
deleted text end

certificates
new text begin
of sale
new text end
, at law or under the applicable mortgage agreements.

Sec. 24.

Minnesota Statutes 2024, section 582.032, subdivision 4, is amended to read:

Subd. 4.

Summons and complaint.

In a foreclosure by advertisement, the party

foreclosing a mortgage or holding the
deleted text begin
sheriff's
deleted text end
certificate of sale or the political subdivision

in which the mortgaged premises are located may initiate a proceeding in district court to

reduce the mortgagor's redemption period under this section. The proceeding must be

initiated by the filing of a complaint, naming the mortgagor, or the mortgagor's personal

representatives or assigns of record, as defendant, in district court for the county in which

the mortgaged premises are located. If the proceeding is initiated by a political subdivision,

the party foreclosing the mortgage or holding the
deleted text begin
sheriff's
deleted text end
certificate of sale must also be

named as a defendant, and the summons and complaint shall be delivered by certified mail

to the foreclosing attorney. If the proceeding is commenced after the foreclosure sale, the

holders of junior liens and interests entitled to notice under subdivision 3 must also be named

as defendants. The complaint must identify the mortgaged premises by legal description

and must identify the mortgage by the names of the mortgagor and mortgagee, and any

assignee of the mortgagee; the date of its making; and pertinent recording information. The

complaint must allege that the mortgaged premises are:

(1) ten acres or less in size;

(2) improved with a residential dwelling consisting of less than five units, which is not

a model home or a dwelling under construction;

(3) not property used in agricultural production; and

(4) abandoned.

The complaint must request an order reducing the mortgagor's redemption period to five

weeks. When the complaint has been filed, the court shall issue a summons commanding

the person or persons named in the complaint to appear before the court on a day and at a

place stated in the summons. The appearance date shall be not less than 15 nor more than

25 days from the date of the issuing of the summons. A copy of the filed complaint must

be attached to the summons.

Sec. 25.

Minnesota Statutes 2024, section 582.032, subdivision 5, is amended to read:

Subd. 5.

Order to show cause.

In a foreclosure by action, the plaintiff or the holder of

the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of sale
new text end
may make a motion to reduce the mortgagor's redemption

period under this section. The political subdivision in which the mortgaged premises are

located may intervene in the action and make a motion to reduce the redemption period.

The motion must conform generally to the pleading requirements provided in subdivision

4. For purposes of the motion, the court has continuing jurisdiction over the parties and the

mortgaged premises through the expiration of the redemption period. When the motion has

been filed, the court shall issue an order to show cause commanding the parties it considers

appropriate to appear before the court on a day and at a place stated in the order. The

appearance date may not be less than 15 nor more than 25 days after the date of the order

to show cause. A copy of the motion must be attached to the order to show cause.

Sec. 26.

Minnesota Statutes 2024, section 582.032, subdivision 7, is amended to read:

Subd. 7.

Hearing; evidence; order.

At the hearing on the summons and complaint or

order to show cause, the court shall enter an order reducing the mortgagor's redemption

period as provided in subdivision 2 or 3, as applicable, if evidence is presented supporting

the allegations in the complaint or motion and no appearance is made to oppose the relief

sought. An affidavit by the sheriff or a deputy sheriff of the county in which the mortgaged

premises are located, or of a building inspector, zoning administrator, housing official, or

other municipal or county official having jurisdiction over the mortgaged premises, stating

that the mortgaged premises are not actually occupied and further setting forth any of the

following supporting facts, is prima facie evidence of abandonment:

(1) windows or entrances to the premises are boarded up or closed off, or multiple

window panes are broken and unrepaired;

(2) doors to the premises are smashed through, broken off, unhinged, or continuously

unlocked;

(3) gas, electric, or water service to the premises has been terminated;

(4) rubbish, trash, or debris has accumulated on the mortgaged premises;

(5) the police or sheriff's office has received at least two reports of trespassers on the

premises, or of vandalism or other illegal acts being committed on the premises; or

(6) the premises are deteriorating and are either below or are in imminent danger of

falling below minimum community standards for public safety and sanitation.

An affidavit of the party foreclosing the mortgage or holding the
deleted text begin
sheriff's
deleted text end
certificate
new text begin
of

sale
new text end
, or one of their agents or contractors, stating any of the above supporting facts, and that

the affiant has changed locks on the mortgaged premises under section
582.031
and that

for a period of ten days no party having a legal possessory right has requested entrance to

the premises, is also prima facie evidence of abandonment. Either affidavit described above,

or an affidavit from any other person having knowledge, may state facts supporting any

other allegations in the complaint or motion and is prima facie evidence of the same. Written

statements of the mortgagor, the mortgagor's personal representatives or assigns, including

documents of conveyance, which indicate a clear intent to abandon the premises, are

conclusive evidence of abandonment. In the absence of affidavits or written statements, or

if rebuttal evidence is offered by the defendant or a party lawfully claiming through the

defendant, the court may consider any competent evidence, including oral testimony,

concerning any allegation in the complaint or motion. A defendant's failure to appear at the

hearing after service of process in compliance with subdivision 6 is conclusive evidence of

abandonment by the defendant, subject to vacation under
Rule 60.02
of the Minnesota Rules

of Civil Procedure. An order entered under this section must contain a legal description of

the mortgaged premises.

Sec. 27.

Minnesota Statutes 2024, section 582.032, subdivision 9, is amended to read:

Subd. 9.

Costs.

Upon motion of a political subdivision that initiated a proceeding under

subdivision 4 or intervened under subdivision 5, if an order is entered to reduce the

redemption period to five weeks, the court shall award costs and disbursements to the

political subdivision. The party foreclosing the mortgage or holding the
deleted text begin
sheriff's
deleted text end
certificate

of sale is liable for an award under this subdivision but may recover these amounts upon

reinstatement or redemption as provided in section
580.30, subdivision 1
, or
582.03,

subdivision 1
.

Sec. 28.

Minnesota Statutes 2024, section 582.041, subdivision 2, is amended to read:

Subd. 2.

Homestead designation notice.

(a) The following notice must be served with

the foreclosure notice of property containing a homestead that is served on the person in

possession of the real property under section
580.03
. The notice is not to be published. The

notice must be in 10-point capitalized letters.

"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU

MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED

SEPARATELY.

YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF

THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY

MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT

SO THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE

REMAINING PROPERTY.

YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY, THE

SHERIFF,
new text begin
THE PRIVATE SELLING OFFICER (IF APPOINTED),
new text end
AND THE COUNTY

RECORDER WITH A COPY OF THE LEGAL DESCRIPTION OF THE HOMESTEAD

YOU HAVE DESIGNATED BY TEN BUSINESS DAYS BEFORE THE DATE THE

PROPERTY IS TO BE SOLD."

(b) The following notice must be served with the summons and complaint in an action

to foreclose a mortgage of property containing a homestead under chapter
581
. The notice

must be in 10-point capitalized letters and is not to be published with the summons if the

summons is published.

"IF PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE, YOU

MAY DESIGNATE AN AREA AS A HOMESTEAD TO BE SOLD AND REDEEMED

SEPARATELY.

YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF

THE PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY

MUST CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT

SO THAT IT DOES NOT UNREASONABLY REDUCE THE VALUE OF THE

REMAINING PROPERTY.

YOU MUST PROVIDE THE COURT WITH A LEGAL DESCRIPTION OF THE

HOMESTEAD YOU HAVE DESIGNATED."

Sec. 29.

Minnesota Statutes 2024, section 582.042, subdivision 3, is amended to read:

Subd. 3.

Designation of separate tracts.

The person being foreclosed must designate

by legal description each of the tracts to be sold separately. The tracts designated must be

previously recorded as separate tracts. Each of the separate tracts must conform to local

zoning ordinances, must have an entrance by direct access to a public road or by permanent

easement, and must not unreasonably affect the value of the remaining property. The person

being foreclosed must serve a copy of the legal descriptions of the tracts to be sold separately

on the foreclosing mortgagee
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,
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new text begin
;
new text end
the sheriff
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,
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new text begin
; the private selling officer, if appointed;
new text end
and the

county recorder or registrar of titles by ten business days before the sale is scheduled, or

for a foreclosure by action under chapter
581
, a copy of the legal descriptions of the tracts

to be sold separately must be provided to the court.

Sec. 30.

Minnesota Statutes 2024, section 582.042, subdivision 4, is amended to read:

Subd. 4.

Sale of property.

If the sheriff
new text begin
or private selling officer
new text end
receives a designation

of separate tracts under subdivision 3, or is ordered by the court, the sheriff
new text begin
or private selling

officer
new text end
must offer and sell the tracts separately.

Sec. 31.

Minnesota Statutes 2024, section 582.25, is amended to read:

582.25 MORTGAGES; VALIDATING FORECLOSURE SALES.

Every mortgage foreclosure sale by advertisement in this state under power of sale

contained in any mortgage duly executed and recorded in the office of the county recorder

or registered with the registrar of titles of the proper county of this state, together with the

record of such foreclosure sale, is, after expiration of the period specified in section
582.27
,

hereby legalized and made valid and effective to all intents and purposes, as against any or

all of the following objections:

(1) that the power of attorney, recorded or filed in the proper office provided for by

section
580.05
:

(i) did not definitely describe and identify the mortgage;

(ii) did not definitely describe and identify the mortgage, but instead described another

mortgage between the same parties;

(iii) did not have the corporate seal affixed thereto, if executed by a corporation;

(iv) had not been executed and recorded or filed prior to sale, or had been executed prior

to, but not recorded or filed until after such sale;

(v) was executed subsequent to the date of the printed notice of sale or subsequent to

the date of the first publication of such notice;

(2) that no power of attorney to foreclose such mortgage as provided in section
580.05
,

was ever given, or recorded, or registered;

(3) that the notice of sale:

(i) was published only three, four or five times, or that it was published six times but

not for six weeks prior to the date of sale;

(ii) properly described the property to be sold in one or more of the publications thereof

but failed to do so in the other publications thereof, the correct description having been

contained in the copy of said notice served on the occupant of the premises;

(iii) correctly stated the date of the month and hour and place of sale but named a day

of the week which did not fall on the date given for such sale, or failed to state or state

correctly the year of such sale;

(iv) correctly described the real estate but omitted the county and state in which said

real estate is located;

(v) correctly described the land by government subdivision, township and range, but

described it as being in a county other than that in which said mortgage foreclosure

proceedings were pending, and other than that in which said government subdivision was

actually located;

(vi) did not state the amount due or failed to state the correct amount due or claimed to

be due;

(vii) incorrectly stated the municipal status of the place where the sale was to occur;

(viii) in one or more of the publications thereof, or in the notice served on the occupant

or occupants designated either a place or a time of sale other than that stated in the certificate

of sale;

(ix) failed to state the names of one or more of the assignees of the mortgage and

described the subscriber thereof as mortgagee instead of assignee;

(x) failed to state or incorrectly stated the name of the mortgagor, the mortgagee, or

assignee of mortgagee;

(xi) was not served upon persons whose possession of the mortgaged premises was

otherwise than by their personal presence thereon, if a return or affidavit was recorded or

filed as a part of the foreclosure record that at a date at least four weeks prior to the sale the

mortgaged premises were vacant and unoccupied;

(xii) was not served upon all of the parties in possession of the mortgaged premises,

provided it was served upon one or more of such parties;

(xiii) was not served upon the persons in possession of the mortgaged premises, if, at

least two weeks before the sale was actually made, a copy of the notice was served upon

the owner in the manner provided by law for service upon the occupants, or the owner

received actual notice of the proposed sale;

(xiv) gave the correct description at length, and an incorrect description by abbreviation

or figures set off by the parentheses, or vice versa;

(xv) was served personally upon the occupants of the premises as such, but said service

was less than four weeks prior to the appointed time of sale;

(xvi) did not state the original principal amount secured, or failed to state the correct

original principal amount secured;

(4) that distinct and separate parcels of land were sold together as one parcel and to one

bidder for one bid for the whole as one parcel;

(5) that no authenticated copy of the order appointing, or letters issued to a foreign

representative of the estate of the mortgagee or assignee, was properly filed or recorded,

provided such order or letters have been filed or recorded in the proper office prior to one

year after the last day of the redemption period of the mortgagor, the mortgagor's personal

representatives or assigns;

(6) that a holder of a mortgage was a representative appointed by a court of competent

jurisdiction in another state or county in which before the foreclosure sale an authenticated

copy of the representative's letters or other record of authority were filed for record in the

office of the county recorder of the proper county but no certificate was filed and recorded

therewith showing that said letters or other record of authority were still in force;

(7)(i) that said mortgage was assigned by a decree of a court exercising probate

jurisdiction in which decree the mortgage was not specifically or sufficiently described;

(ii) that the mortgage foreclosed had been assigned by the final decree of the court

exercising probate jurisdiction to the heirs, devisees, or legatees of the deceased mortgagee,

or the mortgagee's assigns, and subsequent thereto and before the representative of the estate

had been discharged by order of the court, the representative had assigned the mortgage to

one of the heirs, devisees, or legatees named in such final decree, and such assignment

placed on record and the foreclosure proceedings conducted in the name of such assignee

and without any assignment of the mortgage from the heirs, devisees, or legatees named in

such final decree, and the mortgaged premises bid in at the sale by such assignee, and the
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sheriff's
deleted text end
certificate of sale, with accompanying affidavits recorded in the office of the county

recorder of the proper county;

(iii) that a mortgage owned by joint tenants or tenants in common was foreclosed by

only one tenant;

(8) that the
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sheriff's
deleted text end
certificate of sale or the accompanying affidavits and return of

service were not executed, filed or recorded within 20 days after the date of sale, but have

been executed and filed or recorded prior to the last day of the redemption period of the

mortgagor, the mortgagor's personal representatives or assigns;

(9) that the year, or the month, or the day, or the hour of the sale is omitted or incorrectly

or insufficiently stated in the notice of sale or the
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sheriff's
deleted text end
certificate of sale;

(10)(i) that prior to the foreclosure no registration tax was paid on the mortgage, provided

such tax had been paid prior to one year after the last day of the redemption period of the

mortgagor, the mortgagor's personal representatives or assigns;

(ii) that an insufficient registration tax has been paid on the mortgage;

(11) that the date of the mortgage or any assignment thereof or the date, the month, the

day, hour, book, and page, or document number of the record or filing of the mortgage or

any assignment thereof, in the office of the county recorder or registrar of titles is omitted

or incorrectly or insufficiently stated in the notice of sale or in any of the foreclosure papers,

affidavits or instruments;

(12) that the notice of mortgage foreclosure sale or
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sheriff's
deleted text end
certificate of sale designated

the place of sale as the office of a county official located in the court house of the county

when such office was not located in such court house;

(13) that no notice of the pendency of the proceedings to enforce or foreclose the

mortgage as provided in section
508.57
, was filed with the registrar of titles or no memorial

thereof was entered on the register at the time of or prior to the commencement of such

proceedings; or that when required by section
508.57
, the notice of mortgage foreclosure

sale failed to state the fact of registration;

(14) that the power of attorney to foreclose or the notice of sale was signed by the person

who was the representative of an estate, but failed to state or correctly state the person's

representative capacity;

(15) that the complete description of the property foreclosed was not set forth in the
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sheriff's
deleted text end
certificate of sale, if said certificate correctly refers to the mortgage by book and

page numbers or document number and date of filing and the premises are accurately

described in the printed notice of sale annexed to said foreclosure sale record containing

said
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sheriff's
deleted text end
certificate of sale;

(16) that the date of recording of the mortgage was improperly stated in the
deleted text begin
sheriff's
deleted text end

certificate of mortgage foreclosure sale, the mortgage being otherwise properly described

in said
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sheriff's
deleted text end
certificate of mortgage foreclosure sale and said certificate of mortgage

foreclosure sale further referring to the printed notice of mortgage foreclosure sale attached

to said
deleted text begin
sheriff's
deleted text end
certificate of mortgage foreclosure sale in which printed notice the mortgage

and its recording was properly described;

(17) that prior to the first publication of the notice of sale in foreclosure of a mortgage

by advertisement, an action or proceeding had been instituted for the foreclosure of said

mortgage or the recovery of the debt secured thereby and such action or proceeding had not

been discontinued;

(18) that at the time and place of sale the sheriff
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or private sale officer
new text end
considered and

accepted a bid submitted prior to the date of the sale by the owner of the mortgage and sold

the mortgaged premises for the amount of such bid, no other bid having been submitted,

and no one representing the owner of the mortgage being present at the time and place of

sale;

(19) that such sale was postponed by the sheriff
new text begin
or private sale officer
new text end
to a date or time

subsequent to the one specified in the notice of sale but there was no publication or posting

of a notice of such postponement;

(20) that there was not recorded with letters or other record of authority issued to a

representative appointed by a court of competent jurisdiction in another state or county, a

certificate that said letters or other record of authority were still in force and effect;

(21) that the sheriff's
new text begin
or private sale officer's
new text end
affidavit of sale correctly stated in words

the sum for which said premises were bid in and purchased by the mortgagee, but incorrectly

stated the same in figures immediately following the correct amount in words;

(22) that the notice of pendency of the foreclosure as required by section
580.032
was

not filed for record before the first date of publication of the foreclosure notice, but was

filed before the date of sale;

(23) that the servicer did not comply with the requirements of section
582.043
;

(24) that notice for any postponement of the
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sheriff's
deleted text end
new text begin
mortgage foreclosure
new text end
sale by the

party conducting the foreclosure was not timely or properly mailed or published; and

(25) that the publication of the notice of sale did not comply with section
580.033
.

Sec. 32.
new text begin
EFFECTIVE DATE.
new text end

new text begin

Sections 1 to 31 are effective August 1, 2026, and apply to foreclosures with a notice

of pendency under Minnesota Statutes, chapter 580, or a lis pendens for a foreclosure under

Minnesota Statutes, chapter 581, recorded on or after that date.

new text end