Bill > SF2338

This bill modifies several Minnesota statutes related to mortgage foreclosure, redemption, and surplus funds, with key provisions including extending creditor redemption periods from 7 to 14 days, establishing new procedures for handling surplus funds from foreclosure sales, and providing more detailed requirements for how sheriffs and creditors handle redemption and surplus funds. Specifically, the bill requires sheriffs to notify property owners about surplus funds of $100 or more, allows property owners to request that surplus funds be applied to redemption, mandates that surplus funds first be paid to junior creditors with recorded liens if claimed within the redemption period, and provides a process for resolving competing claims to surplus funds. The bill also clarifies documentation requirements for creditors seeking to redeem foreclosed property, increases recording and notification timeframes, and adds provisions to prevent dual tracking in loss mitigation applications. Most of these changes will become effective for redemptions and actions occurring after January 1, 2026, giving stakeholders time to prepare for the new procedures.

Justice

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2338&ssn=0&y=2025