Minnesota Statutes 2023, Chapter 582

CHAPTER 582

MORTGAGES; FORECLOSURE, GENERAL PROVISIONS

ATTORNEY'S FEES.582.01

ATTORNEY'S FEES, COLLECTION.582.02

PURCHASER MAY PAY TAXES AND OTHER

EXPENSES DUE.

582.03

LIMITED RIGHT OF ENTRY; DUTY TO ENTER AND

PROTECT PREMISES.

582.031

FIVE-WEEK REDEMPTION PERIOD; CERTAIN

ABANDONED PROPERTIES.

582.032

MEDIATION NOTICE FOR AGRICULTURAL

PROPERTY.

582.039

FORECLOSURE OF MORTGAGE THAT INCLUDES

HOMESTEAD.

582.041

FORECLOSURE; AGRICULTURAL LAND IN

SEPARATE TRACTS.

582.042

LOSS MITIGATION; MORTGAGE FORECLOSURE

DUAL TRACKING.

582.043

RECEIVER OF RENTS WITH POSSESSION.582.05

DEFAULT TO BE SHOWN.582.06

RECEIVER TO FURNISH BOND.582.07

POSSESSION, ENTRY AFTER FILING BOND.582.08

RECEIVER TO FILE ACCOUNT FOR APPROVAL.582.09

CERTAIN RIGHTS AND REMEDIES NOT LIMITED.582.10

POWERS AND DUTIES OF TRUSTEES IN CERTAIN

CASES.

582.11

COURT'S POWERS OVER TRUSTS NOT LIMITED.582.12

STATE MAY BE DEFENDANT IN CERTAIN CASES.582.13

TERMINATION OF OLD LIS PENDENS NOTICES.582.15

PRESUMPTION OF IDENTITY.582.16

OLD ACTIONS PENDING.582.17

CONSTRUCTION.582.18

MORTGAGES; VALIDATING FORECLOSURE

SALES.

582.25

MORTGAGE FORECLOSURE SALES BY ACTION

LEGALIZED.

582.26

APPLICATION OF CURATIVE PROVISIONS.582.27

DEFICIENCY JUDGMENTS BY MORTGAGE

HOLDER.

582.30

ONE ACTION ALLOWED TO ENFORCE

AGRICULTURAL MORTGAGE.

582.31

VOLUNTARY FORECLOSURE; PROCEDURE.582.32

582.01 ATTORNEY'S FEES.

Subdivision 1. Contractual fees. The mortgagor may, in the mortgage, covenant to pay or authorize

the mortgagee to retain an attorney's fee in case of foreclosure; but such fees in case of foreclosure by

advertisement shall not exceed the following amounts, and any provision for fees in excess thereof shall be

void to the extent of the excess:

Date of execution of mortgage

After May 31, 1971After June 1, 1953 and

before June 1, 1971

Before June 2, 1953The original principal amount

secured by the mortgage

$150$50$25Less than $500

1507550$500-$1,000

15012575$1,000-$5,000

225175100$5,000-$10,000

275

plus $35 for each

225

plus $50 for each

200Exceeding $10,000

additional $5,000 or

major fraction thereof

additional $10,000 or

major fraction thereof

Subd. 1a. Foreclosure by advertisement. Notwithstanding subdivision 1 to the contrary, the minimum

fee for foreclosure by advertisement of mortgages executed after July 31, 1992, is $500.

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Subd. 2. Foreclosure by action. The court shall establish the amount of the attorney's fee in case of

foreclosure by action.

Subd. 3. When default less than 30 days. If at the time of the commencement of the foreclosure

proceedings, all of the items constituting said default were less than 30 days past due, then upon redemption

the mortgagor shall not be required to pay the attorney's fee authorized in this section. This subdivision shall

apply only to mortgages executed after May 31, 1971.

History: (9646) RL s 4499; 1953 c 454 s 1; 1971 c 833 s 2; 1992 c 463 s 34

582.02 ATTORNEY'S FEES, COLLECTION.

When the mortgage provides for an attorney's fee in case of foreclosure, and an attorney at law of the

state is employed to conduct the same, the mortgagee or the mortgagee's heirs, personal representatives or

assigns, may, upon foreclosure, collect or retain such fee, but not in excess of the sum provided by section

582.01. When no such attorney is employed, if any sum as or for such fee be included in the amount for

which the premises are sold, such sum shall be paid in money by the purchaser to the sheriff before the

execution of the certificate of sale, and shall be paid by the sheriff to the mortgagor, or those having the

mortgagor's estate in the mortgaged premises.

History: (9647) RL s 4500; 1986 c 444

582.03 PURCHASER MAY PAY TAXES AND OTHER EXPENSES DUE.

Subdivision 1. Allowable costs collectable upon redemption. The holder of any sheriff's 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 sheriff's 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, or sheriff 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, 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, 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.

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 sheriff's certificate or its agent or attorney, itemizing each of

the allowable costs 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 sheriff's certificate 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 sheriff's certificate

may file a supplemental affidavit if additional allowable costs are incurred during the redemption period. If

the holder of the sheriff's certificate 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

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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 sheriff's certificate, 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 sheriff's certificate even if the amount calculated by the

sheriff is less than the actual amount due.

Subd. 3. Penalty for excessive costs. At any time within one year after the expiration of the mortgagor's

redemption period, the redeeming party, heirs, or assigns may recover from the holder of the sheriff's

certificate three times the amount of any sums declared as costs or disbursements on the affidavit of allowable

costs but not actually paid by the holder, or three times the amount of any sums determined to exceed a

reasonable cost for the declared item where the excess has been retained by the lender, unless the disputed

amounts are paid to the redeeming party, heirs, or assigns prior to entry of judgment.

History: (9648) RL s 4501; 1909 c 421; 1913 c 110 s 1; 1927 c 347; 1976 c 181 s 2; 1983 c 99 s 5;

1986 c 444; 1989 c 328 art 3 s 11; 2008 c 341 art 5 s 21; 2010 c 375 s 13

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 sheriff's certificate are vacant

or unoccupied, the holder of the mortgage or sheriff's certificate 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

sheriff's certificate receives notice that the premises are occupied. The holder of the mortgage or sheriff's

certificate 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 sheriff's certificate, 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 sheriff's certificate 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.

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 sheriff's certificate may take the following

actions to protect the premises from waste, trespass, or from falling below minimum community standards

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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 sheriff's certificate 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 sheriff's certificate 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 sheriff's 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 sheriff's certificates, at law or under the applicable mortgage

agreements.

History: 1989 c 328 art 3 s 12; 1996 c 286 s 2; 1996 c 367 s 2; 2008 c 341 art 5 s 22; 2009 c 123 s 9

582.032 FIVE-WEEK REDEMPTION PERIOD; CERTAIN ABANDONED PROPERTIES.

Subdivision 1. Application. This section applies to mortgages executed after December 31, 1989, under

which there has been a default in the payment of money existing for at least 60 days as of the date of the

filing of the complaint or motion provided for in this section. This section applies only when 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 neither a model home

nor a dwelling under construction; and

(3) not property used in agricultural production.

This section applies to foreclosures by action under chapter 581 and to foreclosures by advertisement

under chapter 580.

Subd. 2. Before foreclosure sale. Notwithstanding section 580.23 or 581.10, if at any time before the

foreclosure sale but not more than 30 days before the first publication of the notice of sale, a court order is

entered reducing the mortgagor's redemption period to five weeks under subdivision 7, after the mortgaged

premises have been sold as provided in chapter 580 or 581, the mortgagor, and the mortgagor's personal

representatives or assigns, within five weeks after the sale under chapter 580, or within five weeks after the

date of the order confirming the sale under chapter 581, may redeem the mortgaged premises as provided

in section 580.23, subdivision 1, or 581.10, as applicable.

Subd. 3. After foreclosure sale. Notwithstanding section 580.23 or 581.10, if at any time after the

foreclosure sale, a court order is entered reducing the mortgagor's redemption period under subdivision 7,

the period during which the mortgagor, the mortgagor's personal representatives and assigns, may redeem

the mortgaged premises in accordance with the provisions of section 580.23, subdivision 1, or section 581.10,

as applicable, is reduced so as to expire five weeks from the date the order is entered. Within ten days after

the order is entered, a certified copy of the order must be filed with the office of the county recorder or

registrar of titles for the county in which the mortgaged premises are located, and a copy of the order must

be posted in a conspicuous place on the mortgaged premises. Within ten days of the order's entry, a copy of

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the order must be sent by certified mail to any party holding a lien or interest of record junior to the foreclosed

mortgage who has filed with the county recorder or registrar of titles a certificate identifying the lienholder

and the lien claimed, stating the lienholder's address and the legal description of the property covered by

the lien, and requesting notice of any postforeclosure sale reduction of the mortgagor's redemption period

for any superior lien. Affidavits of posting and mailing to evidence the same are prima facie evidence of the

facts stated therein and are entitled to recordation along with the certified copy of the order.

Subd. 4. Summons and complaint. In a foreclosure by advertisement, the party foreclosing a mortgage

or holding the sheriff's 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 sheriff's 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.

Subd. 5. Order to show cause. In a foreclosure by action, the plaintiff or the holder of the sheriff's

certificate 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.

Subd. 6. Service. The summons or order to show cause may be served by any person not named a party

to the action. The summons or order to show cause must be served at least seven days before the appearance

date, in the manner provided for service of a summons in a civil action in the district court. If the defendant

cannot be found in the county, the summons or order to show cause may be served by sending a copy by

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certified mail to the defendant's last known address, if any, at least ten days before the appearance date. The

summons or order to show cause must be posted in a conspicuous place on the mortgaged premises not less

than seven days before the appearance date. If personal or certified mail service cannot be made on a

defendant, then the plaintiff or plaintiff's attorney may file an affidavit to that effect with the court and

service by posting the summons or order to show cause on the mortgaged premises is sufficient as to that

defendant.

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 sheriff's certificate, 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.

Subd. 8. Recording. A certified copy of an order reducing a mortgagor's redemption period entered

under this section may be recorded in the office of the county recorder or registrar of titles for the county

in which the mortgaged premises are located.

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

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court shall award costs and disbursements to the political subdivision. The party foreclosing the mortgage

or holding the sheriff's 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.

History: 1989 c 328 art 3 s 13; 1Sp1989 c 2 s 2,3; 2008 c 178 s 1; 2009 c 123 s 10-13; 2010 c 375 s

14

582.039 MEDIATION NOTICE FOR AGRICULTURAL PROPERTY.

Subdivision 1. Requirement. A person may not begin a proceeding under this chapter or chapter 580

to foreclose a mortgage on agricultural property subject to sections 583.20 to 583.32 that has a secured debt

of more than the amount provided in section 583.24, subdivision 5, unless: (1) a mediation notice is served

on the mortgagor after a default has occurred in the mortgage and a copy is served on the director and the

mortgagor and mortgagee have completed mediation under sections 583.20 to 583.32; or (2) as otherwise

allowed under sections 583.20 to 583.32.

Subd. 2. Contents. A mediation notice must contain the following notice with the blanks properly filled

in.

"TO: ....(Name of Record Owner)....

YOU HAVE DEFAULTED ON THE MORTGAGE OF THE AGRICULTURAL PROPERTY

DESCRIBED AS ....(Size and Reasonable Location, Not Legal Description). THE AMOUNT OF THE

OUTSTANDING DEBT ON THIS PROPERTY IS ....(Amount of Debt)....

AS HOLDER OF THE MORTGAGE, ....(Name of Holder of Mortgage).... INTENDS TO FORECLOSE

ON THE PROPERTY DESCRIBED ABOVE.

YOU HAVE THE RIGHT TO HAVE THE MORTGAGE DEBT REVIEWED FOR MEDIATION. IF

YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE MEDIATED ONLY ONCE.

IF YOU DO NOT REQUEST MEDIATION, THIS DEBT WILL NOT BE SUBJECT TO FUTURE

MEDIATION IF THE SECURED PARTY ENFORCES THE DEBT.

IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE MINNESOTA EXTENSION

SERVICE WILL PROVIDE AN ORIENTATION MEETING AND A FINANCIAL ANALYST TO HELP

YOU PREPARE FINANCIAL INFORMATION. IF YOU DECIDE TO PARTICIPATE IN MEDIATION,

IT WILL BE TO YOUR ADVANTAGE TO ASSEMBLE YOUR FARM FINANCE AND OPERATION

RECORDS AND TO CONTACT A COUNTY EXTENSION OFFICE AS SOON AS POSSIBLE.

MEDIATION WILL ATTEMPT TO ARRIVE AT AN AGREEMENT FOR HANDLING FUTURE

FINANCIAL RELATIONS.

TO HAVE THE MORTGAGE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A

MEDIATION REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU RECEIVE THIS

NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE FROM THE DIRECTOR OF THE

MINNESOTA EXTENSION SERVICE.

FROM: ....(Name and Address of Holder of Mortgage)...."

History: 1986 c 398 art 1 s 4,18; 1987 c 292 s 10,37,38; 1989 c 350 art 16 s 8; 1990 c 525 s 1; 1991

c 208 s 2; 1Sp1993 c 2 art 6 s 2; 1995 c 212 art 2 s 11; 1997 c 183 art 3 s 29; 1998 c 395 s 7; 1998 c 402

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s 6; 1999 c 214 art 2 s 19; 2001 c 195 art 1 s 23; 1Sp2001 c 1 art 2 s 25; 1Sp2001 c 2 s 150; 2009 c 94 art

1 s 96 ; 2017 c 88 art 2 s 80; 2023 c 52 art 19 s 36

NOTE: See section 583.215 for expiration of this section.

582.04 [Repealed, 1986 c 398 art 2 s 4]

582.041 FORECLOSURE OF MORTGAGE THAT INCLUDES HOMESTEAD.

Subdivision 1. Notification of homestead designation. If a mortgage on real property is foreclosed

and the property contains a portion of a homestead, the person in possession of the real property must be

notified by the foreclosing mortgagee that the homestead may be sold and redeemed separately from the

remaining property. The notice in subdivision 2 must be served with the notice of foreclosure that is served

on the person in possession of the real property with the requirements in section 580.03 or for a foreclosure

by action under chapter 581, in the summons and complaint served on the person in possession of the real

property.

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, 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."

Subd. 3. Designation of homestead property. The person who is homesteading the property must

designate a legal description of the homestead property to be sold separately. The homestead property

designated may include any amount of the property. The designation must conform to local zoning, include

the dwelling occupied by the person homesteading the property, and be compact so that it does not

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unreasonably affect the value of the remaining property. The person homesteading the property must serve

a copy of the designation on the foreclosing mortgagee, the sheriff, 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 designation must be provided to the court.

Subd. 4. Sale of property. If the sheriff receives a homestead property designation under subdivision

3, or is ordered by the court, the sheriff must offer and sell the designated homestead property, and the

remaining property, separately.

Subd. 5. Redemption. A party who has a right of redemption may redeem the designated homestead,

the remaining property, or the entire property including the homestead. The period of redemption is the

period for the entire property including the designated homestead.

History: 1986 c 398 art 2 s 3; 1Sp1986 c 3 art 2 s 44; 1987 c 396 art 4 s 1-4

582.042 FORECLOSURE; AGRICULTURAL LAND IN SEPARATE TRACTS.

Subdivision 1. Notice about tracts. If a mortgage on real property that is agricultural land is foreclosed

and the property contains separate tracts, the person in possession of the real property must be notified by

the foreclosing mortgagee that the separate tracts may be sold and redeemed separately. The notice in

subdivision 2 must be served with the notice of foreclosure that is served on the person in possession of the

property under section 580.03, or for a foreclosure by action under chapter 581, in the summons and complaint.

Subd. 2. Designation notice. (a) The following notice must be served with the foreclosure notice of the

property that is served on the person in possession of the real property under section 580.03. The notice

must be in 10-point capitalized letters and the notice is not to be published.

"IF THE PROPERTY TO BE SOLD CONTAINS SEPARATE TRACTS, YOU MAY REQUEST

THAT THE TRACTS BE SOLD AND REDEEMED SEPARATELY. 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.

YOU MUST PROVIDE THE PERSON FORECLOSING ON THE PROPERTY, THE SHERIFF, AND

THE COUNTY RECORDER WITH A COPY OF THE LEGAL DESCRIPTIONS OF EACH OF THE

TRACTS YOU HAVE DESIGNATED TO BE SOLD SEPARATELY 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 real property containing separate tracts 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 THE PROPERTY TO BE SOLD CONTAINS SEPARATE TRACTS, YOU MAY REQUEST

THAT THE TRACTS BE SOLD AND REDEEMED SEPARATELY. EACH OF THE SEPARATE TRACTS

MUST CONFORM TO LOCAL ZONING ORDINANCES.

YOU MUST PROVIDE THE COURT WITH A COPY OF THE LEGAL DESCRIPTIONS OF EACH

OF THE TRACTS YOU HAVE DESIGNATED TO BE SOLD SEPARATELY."

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

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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, the sheriff, 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.

Subd. 4. Sale of property. If the sheriff receives a designation of separate tracts under subdivision 3,

or is ordered by the court, the sheriff must offer and sell the tracts separately.

Subd. 5. Redemption. The designated tracts may be redeemed separately or the entire foreclosed property

may be redeemed. The period of redemption is the period for the entire property including all of the designated

tracts.

History: 1987 c 396 art 4 s 5

582.043 LOSS MITIGATION; MORTGAGE FORECLOSURE DUAL TRACKING.

Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this subdivision have

the meanings given them.

(b) "Foreclosure sale date" means either:

(1) the date of the foreclosure sale contained in the notice that has been either served or published as

required under section 580.03, or 550.18 and 550.19; or

(2) the date to which the foreclosure sale is postponed by the borrower under section 580.07, subdivision

2,

whichever is later.

a repayment agreement, a principal reduction, capitalizing arrears, or any other relief intended to allow a

mortgagor to retain ownership of the property.

(d) "Mortgagor" means a person who is liable on the promissory note secured by the mortgage, except

that the mortgagor does not include a person who has surrendered the mortgaged property, as evidenced by

either a letter or other written notice confirming the surrender or by delivery of the keys to the property to

the servicer or authorized agent.

(e) "Servicer" means a residential mortgage servicer as defined in section 58.02, subdivision 20.

(f) "Small servicer" means a servicer that is either:

(1) a small servicer, as defined in Code of Federal Regulations, title 12, section 1026.41, paragraph (e),

clause (4);

(2) a Housing Finance Agency, as defined in Code of Federal Regulations, title 24, section 266.5; or

(3) a servicer that has conducted 125 or fewer foreclosure sales during the preceding 12 months.

Subd. 2. Applicability. This section applies only to first lien mortgages subject to foreclosure under

chapter 580 or 581 that are secured by owner-occupied residential real property containing no more than

four dwelling units and where the subject mortgage does not secure a loan for business, commercial, or

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agricultural purposes. For purposes of this subdivision, "owner-occupied" means that the property is the

principal residence of the owner.

Nothing in this section imposes a duty on a servicer to provide any mortgagor with any specific loan

modification option.

Subd. 3. Compliance required. A servicer shall not conduct a foreclosure sale unless the servicer has

complied with subdivisions 5, 6, and 7, if applicable.

Subd. 4. Small servicer requirements. A small servicer is not subject to this section, except that a small

servicer shall not refer a mortgage loan to an attorney for foreclosure, record the notice of pendency or lis

pendens, or conduct a foreclosure sale if a mortgagor is performing pursuant to the terms of a loan modification

or other loss mitigation agreement.

Subd. 5. Loss mitigation. A servicer must:

(1) notify a mortgagor in writing of available loss mitigation options offered by the servicer that are

applicable to the mortgagor's loan before referring the mortgage loan to an attorney for foreclosure;

(2) after receiving a request for a loan modification or other loss mitigation option, exercise reasonable

diligence in obtaining documents and information from the mortgagor to complete a loss mitigation

application, facilitate the submission and review of loss mitigation applications, and give the mortgagor a

reasonable amount of time to provide the required documents;

(3) upon the timely receipt of a loss mitigation application, evaluate the mortgagor for all available loss

mitigation options prior to referring a mortgage loan to an attorney for foreclosure;

(4) after review of the loss mitigation application, timely offer the mortgagor a loan modification if the

mortgagor is eligible or, if not, timely offer the mortgagor any other loss mitigation option for which the

mortgagor is eligible; and

(5) comply with any applicable appeal period and procedures applicable to the specific loss mitigation

option.

Subd. 6. Dual tracking. (a) If the servicer has received a loss mitigation application and the subject

mortgage loan has not already been referred to an attorney for foreclosure, a servicer shall not refer the

subject mortgage loan to an attorney for foreclosure while the mortgagor's application is pending, unless:

(1) the servicer determines that the mortgagor is not eligible for any loss mitigation option, the servicer

informs the mortgagor of the determination in writing, and the applicable appeal period has expired without

an appeal or the appeal has been properly denied;

(2) where a written offer is made and a written acceptance is required, the mortgagor fails to accept the

loss mitigation offer within the time frame specified in the offer or within 14 days after the date of the offer,

whichever is longer; or

(3) the mortgagor declines the loss mitigation offer in writing.

(b) If the servicer receives a loss mitigation application after the subject mortgage loan has been referred

to an attorney for foreclosure, but before a foreclosure sale has been scheduled, a servicer shall not move

for an order of foreclosure, seek a foreclosure judgment, or conduct a foreclosure sale unless:

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(1) the servicer determines that the mortgagor is not eligible for a loss mitigation option, the servicer

informs the mortgagor of this determination in writing, and the applicable appeal period has expired without

an appeal or the appeal has been properly denied;

(2) where a written offer is made and a written acceptance is required, the mortgagor fails to accept the

loss mitigation offer within the time frame specified in the offer or within 14 days after the date of the offer,

whichever is longer; or

(3) the mortgagor declines a loss mitigation offer in writing.

but before midnight of the seventh business day prior to the foreclosure sale date, the servicer must halt the

foreclosure sale and evaluate the application. If required to halt the foreclosure sale and evaluate the

application, the servicer must not move for an order of foreclosure, seek a foreclosure judgment, or conduct

a foreclosure sale unless:

(1) the servicer determines that the mortgagor is not eligible for a loss mitigation option, the servicer

informs the mortgagor of this determination in writing, and the applicable appeal period has expired without

an appeal or the appeal has been properly denied;

(2) where a written offer is made and a written acceptance is required, the mortgagor fails to accept the

loss mitigation offer within the time frame specified in the offer or within 14 days after the date of the offer,

whichever is longer; or

(3) the mortgagor declines a loss mitigation offer in writing.

(d) A servicer shall not move for an order of foreclosure or conduct a foreclosure sale under any of the

following circumstances:

(1) the mortgagor is in compliance with the terms of a trial or permanent loan modification, or other

loss mitigation option; or

(2) a short sale has been approved by all necessary parties and proof of funds or financing has been

provided to the servicer.

Subd. 7. Relief. (a) A mortgagor has a cause of action, based on a violation of this section, to enjoin or

set aside a sale. A mortgagor who prevails in an action to set aside or enjoin a sale, or who successfully

defends a foreclosure by action based on a violation of this section, is entitled to reasonable attorney fees

and costs.

(b) A lis pendens must be recorded prior to the expiration of the mortgagor's applicable redemption

period under section 580.23 or 582.032 for an action taken under paragraph (a). The failure to record the lis

pendens creates a conclusive presumption that the servicer has complied with this section.

History: 2013 c 115 s 3; 2014 c 191 s 1

582.05 RECEIVER OF RENTS WITH POSSESSION.

On the commencement of proceedings to foreclose, either by action or advertisement, any mortgage on

a leasehold estate of more than three years covering urban property, or at any time after such commencement

until the expiration of the period of redemption, the owner of any such mortgage or the purchaser at the

foreclosure sale, as the case may be, may apply to the district court for the appointment of a receiver to take

immediate possession of the mortgaged premises and to hold, maintain, and operate the same and collect

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the rents and income therefrom, and apply the same in the manner hereinafter specified. The application for

such receiver may be included in an action to foreclose the mortgage or may be by separate action and, if

by separate action, the only necessary party defendant shall be the owner of the mortgaged leasehold at the

time of the commencement of the action.

History: (9650) 1915 c 305 s 1

582.06 DEFAULT TO BE SHOWN.

The court shall appoint the receiver on a showing that default has been made in any of the conditions

of the mortgage, without any further evidence and without regard to the solvency or insolvency of the person

liable for the debt secured by the mortgage. The appointment shall be made without notice on a showing to

the court that the danger of termination or forfeiture of the leasehold estate covered by the mortgage is

imminent or that waste of the same is being committed, or that the owner of the leasehold cannot be found

within the state. The mortgagee may be appointed receiver in the discretion of the court.

History: (9651) 1915 c 305 s 2

582.07 RECEIVER TO FURNISH BOND.

Before undertaking duties, the receiver so appointed shall file in court a bond for the faithful performance

of such duties. The bond shall run to the owner of the mortgaged leasehold and shall be in such sum as the

court shall determine and with such surety or sureties as shall be approved by the court.

History: (9652) 1915 c 305 s 3; 1986 c 444

582.08 POSSESSION, ENTRY AFTER FILING BOND.

After filing the bond mentioned in section 582.07, the receiver shall enter into possession of the mortgaged

premises and collect all the rents and income therefrom, and shall apply the same to the payment of the

expenses of the receivership and to the payment of all sums of money necessary or proper to preserve and

protect the leasehold estate, and to maintain and operate the mortgaged premises, and shall pay the surplus,

if any, to the owner of the mortgaged leasehold at the termination of the receivership. The receiver may

make any or all such payments on the receiver's own motion or may make the same in pursuance of an order

of the court. Such expenses shall include reasonable attorneys' fees and receiver's fees to be fixed by the

court.

History: (9653) 1915 c 305 s 4; 1986 c 444

582.09 RECEIVER TO FILE ACCOUNT FOR APPROVAL.

At the termination of the receivership for any cause, the receiver shall file an account in such court. On

the approval and confirmation of the account the receiver shall dispose of the funds on hand in accordance

with the order of the court, and shall thereupon be entitled to a discharge by order of court, freeing and

releasing the receiver from all further liability on account of such receivership.

History: (9654) 1915 c 305 s 5; 1986 c 444

582.10 CERTAIN RIGHTS AND REMEDIES NOT LIMITED.

The provisions of sections 582.05 to 582.09 shall in no manner detract from or limit the rights and

remedies of the mortgagor or the mortgagee provided by law.

History: (9655) 1915 c 305 s 6

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582.11 POWERS AND DUTIES OF TRUSTEES IN CERTAIN CASES.

When a mortgage made or assigned to a trustee or trust deed on any real property or any real and personal

property located in this state has been heretofore or shall hereafter be foreclosed and bid in on the foreclosure

by a trustee for the holders of the bonds or notes secured by the mortgage or trust deed, or for the holders

of certificates or other evidences of equitable interest, in the mortgage or trust deed, or when a mortgagor

after the mortgage has been executed and delivered, but not before nor as a part of the mortgage transaction,

conveys directly to the mortgage trustee, thereby eliminating the mortgagor's title, the trustee may at any

time petition the district court of the county in which the property, or any portion of it, is situated for

instructions in the administration of the trust. Upon the filing of the petition, the court shall make an order

fixing a time and place for hearing it, unless hearing has been waived, in writing, by the beneficiaries of the

trust. Notice of the hearing shall be given by publishing a copy of the order one time in a legal newspaper

of the county at least 20 days before the date of the hearing, and by mailing a copy of it to each known party

in interest then in being whose address is known, at the party's last known address, at least ten days before

the date of the hearing, or in any other manner the court orders. If the court deems further notice necessary,

it shall be given as specified in the order. Upon the hearing the court shall make such order as it deems

appropriate, including an order to sell, mortgage, or lease the property, or any part of it, in the manner and

upon the terms as the court prescribes. In the case of a sale, the court, in its discretion, may authorize the

trustee to sell at private sale or may direct the sheriff of the county to offer the property for sale at public

auction and sell it to the highest bidder for cash. Any sale of property made at public auction shall be reported

to the court for confirmation and be confirmed by the court before it is effective and valid. Notice of hearing

on the confirmation shall be given to all parties in interest who have appeared in the proceedings. Upon

confirmation, the sheriff shall make, execute, and deliver, subject to the terms and conditions the court

imposes, a good and sufficient instrument of conveyance, assignment, and transfer. No confirmation of a

private sale, mortgage, or lease shall be required. The order of confirmation in the case of a sale at public

auction, and the order authorizing a private sale, mortgage, or lease, shall be final and conclusive as to all

matters determined in it. It shall be binding in rem upon the trust estate and upon the interests of all

beneficiaries, vested or contingent, except that appeal may be taken from the order by any party in interest

within 30 days from its entry, by filing notice of appeal with the court administrator of the district court,

who shall mail a copy of the notice to each adverse party who has appeared of record.

History: (9655-5) 1937 c 108 s 1; 1983 c 247 s 194; 1986 c 444; 1Sp1986 c 3 art 1 s 82

582.12 COURT'S POWERS OVER TRUSTS NOT LIMITED.

Nothing in section 582.11 shall be deemed to limit or abridge the power or jurisdiction of the district

court over trusts and trustees, or to limit the authority conferred upon any trustee by any mortgage, trust

deed, or other instrument.

History: (9655-6) 1937 c 108 s 2

582.13 STATE MAY BE DEFENDANT IN CERTAIN CASES.

In all cases not otherwise provided for, the consent of the state of Minnesota is given to be named a

party in any suit which is now pending or which may hereafter be brought in any state court having jurisdiction

of the subject matter, to quiet title to or for the foreclosure of a mortgage or other lien upon real estate or

personal property, for the purpose of securing an adjudication touching any mortgage, or other lien the state

of Minnesota may have or claim on the real estate or personal property involved, or to determine the boundary

line between any real property of the state and real property contiguous thereto, provided, that this shall not

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be deemed to supersede any express provision of law relating to actions to which the state may be made a

party, nor to relieve any person from complying with any requirement of such laws.

History: 1943 c 134 s 1; 1945 c 2 s 1

582.14 MS 2022 [Repealed, 2023 c 52 art 19 s 42]

582.15 TERMINATION OF OLD LIS PENDENS NOTICES.

Notice of lis pendens recorded prior to January 1, 1936, shall cease and terminate on and after January

1, 1946.

History: 1945 c 363 s 2

582.16 PRESUMPTION OF IDENTITY.

The presumption of identity arising from identity or substantial identity of names of a grantee and of a

succeeding grantor in a chain of title, shall extend to those cases where in one instrument the party is

designated by initials which correspond with the name appearing in another instrument.

History: 1945 c 363 s 3

582.17 OLD ACTIONS PENDING.

Nothing contained in sections 582.14 to 582.18 shall apply to any action or proceeding pending at the

time of the passage of Laws 1945, chapter 363, or commenced prior to January 1, 1946.

History: 1945 c 363 s 4

582.18 CONSTRUCTION.

Sections 582.14 to 582.18 shall be liberally construed for the purpose of ascertaining marketability of

title as between vendors and purchasers.

History: 1945 c 363 s 5

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;

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(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;

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(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 sheriff's 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 sheriff's 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 sheriff's 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 sheriff's 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;

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(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 sheriff's 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 sheriff's certificate of sale;

(16) that the date of recording of the mortgage was improperly stated in the sheriff's certificate of

mortgage foreclosure sale, the mortgage being otherwise properly described in said sheriff's 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 sheriff's 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 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 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 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 sheriff's 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.

History: 1976 c 148 s 1; 1976 c 181 s 2; 1986 c 444; 1995 c 92 s 13; 1995 c 189 s 8; 1996 c 277 s 1;

2013 c 115 s 4; 2015 c 13 s 3; 2015 c 14 s 2

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582.26 MORTGAGE FORECLOSURE SALES BY ACTION LEGALIZED.

In all mortgage foreclosure sales by action wherein, prior to the date specified in section 582.27,

subdivision 2, the report of sale:

(1) has been confirmed by order filed in the action and a certificate of sale was thereafter executed in

proper form but not recorded or filed within 20 days thereafter such certificate and the later record thereof

are hereby legalized with the same effect as if such certificate had been executed, acknowledged, and recorded

or filed within such 20 days;

(2) was made and presented to the court and the sale confirmed by an order filed in the action, but the

report was not filed with the court administrator until after the filing therein of the order of confirmation,

and in which the certificate of sale was executed in proper form but recorded more than 20 days after such

confirmation, but within one year from the date of sale, such certificate and the record thereof and the

subsequently filed report of sale are hereby legalized with the same effect as if such certificate had been

executed, acknowledged and recorded within such 20 days and as if such report of sale had been filed in the

action at the time of filing the order of confirmation.

History: 1976 c 148 s 2; 1Sp1986 c 3 art 1 s 82

582.27 APPLICATION OF CURATIVE PROVISIONS.

Subdivision 1. Section 582.25. (a) Upon expiration of the periods specified in this section, the provisions

of section 582.25 apply to a mortgage foreclosure sale subject to this section:

(1) as to all of the provisions of section 582.25, except clauses (2) and (23), one year after the last day

of the redemption period of the mortgagor, the mortgagor's personal representatives or assigns;

(2) as to clause (2), ten years after the date of the foreclosure sale; and

(3) as to clause (23), the expiration of the mortgagor's applicable redemption period as specified in

section 580.23 or 582.032.

(b) The time limits provided under paragraph (a) apply notwithstanding any common law.

Subd. 2. Section 582.26. The date to which section 582.26 applies is one year after the date of the

foreclosure sale.

Subd. 3. Pending and newly commenced actions. The provisions of sections 582.25 to 582.27 shall

not affect any action or proceeding pending on August 1, 1989, or which shall be commenced before February

1, 1990, in any of the courts of the state, involving the validity of such foreclosure. Laws 1992, chapter 463,

does not affect any proceeding pending on August 1, 1992, or commenced before February 1, 1993, in any

of the courts of the state, involving the validity of the foreclosure.

The amendments to the provisions of sections 582.25 to 582.27 by Laws 1995, chapter 92, shall not

affect any action pending on August 1, 1995, or which shall be commenced before February 1, 1996, in any

of the courts of the state, involving the validity of a foreclosure.

History: 1976 c 148 s 3; 1979 c 133 s 1; 1985 c 94 s 1; 1989 c 229 s 8; 1992 c 463 s 35; 1995 c 92 s

14; 2013 c 115 s 5; 2014 c 191 s 2

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582.30 DEFICIENCY JUDGMENTS BY MORTGAGE HOLDER.

Subdivision 1. Deficiency allowed. (a) Except as provided in this section, a person holding a mortgage

may obtain a deficiency judgment against the mortgagor if the amount a person holding a mortgage receives

from a foreclosure sale is less than:

(1) the amount remaining unpaid on the mortgage under chapter 580; or

(2) the amount of the judgment entered under chapter 581.

(b) Except as provided in subdivisions 3 and 5, the judgment may not be for more than the difference

between the amount received from the foreclosure sale less expenses and costs and:

(1) for a foreclosure by advertisement, the total amount that attaches to the sale proceeds under chapter

580; or

(2) for a foreclosure by action, the amount of the judgment entered under chapter 581.

mortgaged property is used in agricultural production only by a tenant who is not the mortgagor.

Subd. 2. Not if six-month or five-week redemption period. A deficiency judgment is not allowed if

a mortgage is foreclosed by advertisement under chapter 580, and has a redemption period of six months

under section 580.23, subdivision 1, or five weeks under section 582.032.

Subd. 3. Ag property mortgage entered after March 22, 1986. (a) If a mortgage entered after March

22, 1986, on property used in agricultural production is foreclosed and sold, a deficiency judgment may

only be obtained by filing an action for a deficiency judgment and a determination of the fair market value

of the property within 90 days after the foreclosure sale. In the action all issues of fact, including determination

of the fair market value of the property, shall be tried by a jury unless a jury trial is waived as provided in

Minnesota district court rules. A court may allow a deficiency judgment only if it determines that the sale

of the property was conducted in a commercially reasonable manner.

(b) The amount of the deficiency judgment is limited to the difference of the fair market value of the

property, and the amount remaining unpaid on the mortgage if the foreclosure is under chapter 580 or the

amount of the judgment if the foreclosure is under chapter 581. The property may not be presumed to be

sold for its fair market value. A party adversely affected by a deficiency judgment may submit evidence

relevant to establishing the fair market value of the property. Notice of the time and place where the action

for the deficiency judgment and the determination of fair market value of the property is to be heard must

be given to all parties adversely affected by the judgment.

Subd. 4. Judgment on mortgage note. A personal judgment may not be executed against a mortgagor

liable on a mortgage note entered after March 22, 1986, secured by real property used in agricultural

production, unless the fair market value of the property is determined in a proceeding as provided in

subdivision 3. The personal judgment on the mortgage note may not be for more than the difference of the

amount due on the note and the fair market value of the property.

Subd. 5. Ag property mortgage entered before March 23, 1986. (a) If a mortgage entered on or before

March 22, 1986, on property used in agricultural production is foreclosed and sold, a deficiency judgment

may only be obtained by filing an action for a deficiency judgment and a determination of the fair market

value of the property within 90 days after the foreclosure sale. In the action all issues of fact, including

determination of the fair market value of the property, shall be tried by a jury unless a jury trial is waived

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as provided in Minnesota District Court Rules. A court may allow a deficiency judgment only if it determines

that the sale of the property was conducted in a commercially reasonable manner.

(b) The amount of the deficiency judgment is limited to the difference of the fair market value of the

property, and the amount remaining unpaid on the mortgage if the foreclosure is under chapter 580 or the

amount of the judgment if the foreclosure is under chapter 581. The property may not be presumed to be

sold for its fair market value. A party adversely affected by a deficiency judgment may submit evidence

relevant to establishing the fair market value of the property. Notice of the time and place where the action

for the deficiency judgment and the determination of fair market value of the property is to be heard must

be given to all parties adversely affected by the judgment.

Subd. 6. Judgment on mortgage note. A personal judgment may not be executed against a mortgagor

liable on a mortgage note entered on or before March 22, 1986, secured by real property used in agricultural

production, unless the fair market value of the property is determined in a proceeding as provided in

subdivision 5. The personal judgment on the mortgage note may not be for more than the difference of the

amount due on the note and the fair market value of the property.

Subd. 7. Statute of limitations on executing judgment. A deficiency judgment or personal judgment

obtained to enforce a mortgage debt on property used in agricultural production may be enforced by execution,

but the judgment may not be executed after three years from the date judgment was entered.

Subd. 8. Subdivision 5 judgments; no execution until March 22, 1987. For a mortgage on property

used in agricultural production entered on or before March 22, 1986, a deficiency judgment or personal

judgment to enforce the mortgage debt may not be executed on real or personal property used for agricultural

production until one year after March 22, 1986.

Subd. 9. Attachment of judgment after judgment entered. A deficiency judgment or personal judgment

obtained to enforce a mortgage debt on property used in agricultural production does not attach to real or

personal property that is acquired by the mortgagor or debtor after the judgment is entered.

History: 1986 c 398 art 19 s 5; 1Sp1986 c 2 art 3 s 2; 1989 c 328 art 3 s 14; 1990 c 580 s 2-5; 1999 c

184 s 2

582.31 ONE ACTION ALLOWED TO ENFORCE AGRICULTURAL MORTGAGE.

(a) For a mortgage on property used in agricultural production entered into on or before March 22, 1986,

the mortgagee may only proceed to:

(1) obtain a personal judgment for the debt owed on the note secured by the mortgage and execute on

the judgment; or

(2) foreclose the mortgage and obtain a deficiency judgment, if allowed.

(b) An action under paragraph (a), either clause (1) or (2), bars an action under the other clause.

History: 1986 c 398 art 19 s 6

582.32 VOLUNTARY FORECLOSURE; PROCEDURE.

Subdivision 1. Application. This section applies to mortgages executed on or after August 1, 1993,

under which there is a default and the mortgagor and mortgagee enter into an agreement for voluntary

foreclosure of the mortgage under this section. This section applies only to mortgages on real estate no part

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of which is classified as a homestead under section 273.124 or in agricultural use as defined in section

40A.02, subdivision 3, as of the date of agreement.

Subd. 2. Definitions. (a) As used in this section, the following terms have the meanings given:

(b) "Agreement" means the agreement for voluntary foreclosure described in subdivision 3.

date on which the agreement is executed and acknowledged by both the mortgagor and mortgagee.

(d) "Junior lien" means a lien subordinate to the lien of the mortgage foreclosed under this section, the

holder of which has a redeemable interest in the real estate under section 580.24.

(e) "Mortgage" means a recorded mortgage on real estate no part of which is classified as a homestead

under section 273.124 or is in agricultural use as defined in section 40A.02, subdivision 3, as of the date of

agreement.

(f) "Mortgagee" means the record holders of the mortgage, whether one or more.

(g) "Mortgagor" means the record holders, whether one or more, of the legal and equitable interest in

the real estate encumbered by the mortgage.

(h) "Real estate" means the real property encumbered by the mortgage.

Subd. 3. Procedure. (a) Voluntary foreclosure may occur only in accordance with this section.

(b) The mortgagor and mortgagee shall enter into a written agreement for voluntary foreclosure under

this section only during the existence of a default under the mortgage. At least one of the items constituting

the default must have been in existence for at least one month on the date of agreement. The agreement shall

identify the mortgage by recording data and the real estate by legal description, specify the date of the

agreement and provide that:

(1) The mortgagor and mortgagee have agreed that the mortgage shall be voluntarily foreclosed with

the mortgagor's redemption period reduced to two months as provided in this section.

(2) The mortgagee waives any rights to a deficiency or other claim for personal liability against the

mortgagor arising from the mortgage or the debt secured by the mortgage. This does not preclude an agreement

between the mortgagor and mortgagee to a payment to the mortgagee as part of the voluntary foreclosure,

or collection from a guarantor.

(3) The mortgagor waives its right to surplus sale proceeds, to contest foreclosure, and to rents and

occupancy during the period from the date of agreement through the redemption period.

(4) The mortgagor consents to the appointment of a receiver for, or grants mortgagee possession of, the

real estate and all rights of possession of the real estate, including, but not limited to operating, maintaining,

and protecting the real estate, and the making of any additions or betterments to the real estate.

(5) A default exists under the mortgage and on the date of agreement at least one of the items constituting

the default has been in existence for at least one month.

the county recorder or registrar of titles, as appropriate, in each county where any part of the real estate is

located. Filing or recording of a short form agreement signed by the mortgagor and mortgagee containing

the following information satisfies this requirement:

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(1) the identity and mailing address of the mortgagor and mortgagee;

(2) the legal description of the real estate;

(3) the mortgage identified by recording data;

(4) a statement that an event of default under the mortgage has existed for at least one month as of the

date of agreement and foreclosure under this section has been agreed to by the parties; and

(5) the date of agreement.

(d) A certificate signed by the county or city assessor where the real estate is located, stating that, as of

the date of agreement, the real estate was not in agricultural use as defined in section 40A.02, subdivision

3, and was not a homestead for property tax purposes under section 273.124, must be recorded before or

with the certificate of sale in the office of the county recorder or registrar of titles where the real estate is

located, and shall be prima facie evidence of the facts contained in the certificate.

(e) Within ten days of receipt of a written request for information from a holder of a junior lien, the

mortgagee, without charge, shall deliver or mail by first class mail postage prepaid, to the address of the

holder set forth in the request, either the agreement or a written statement of the amount of money and the

value or a detailed description of any property paid or transferred, or to be paid or transferred, by the parties

to the agreement under the terms of the agreement. Failure to provide this information does not invalidate

the foreclosure.

Subd. 4. [Repealed, 1993 c 40 s 11]

Subd. 4a. No right of reinstatement. There is no right of reinstatement pursuant to section 580.30, of

the mortgage after the date of agreement.

Subd. 5. Foreclosure procedure; notice to creditors. (a) After the date of agreement, the mortgagee

may proceed to foreclose the mortgage in accordance with the laws generally applicable to foreclosure by

advertisement including this chapter and chapter 580, except as otherwise provided in this section.

(b) At least 14 days before the date of sale, the mortgagee shall:

(1) serve the persons in possession of the real estate with notice of the voluntary foreclosure sale under

this section in the same manner as in a foreclosure by advertisement as provided in section 580.03; and

(2) mail notice of the voluntary foreclosure sale under this section to each holder of a junior lien who

has filed or recorded a request for notice under section 580.032.

manner as in a foreclosure by advertisement as provided in section 580.03 for four consecutive weeks. The

notice must include all information required under section 580.04, clauses (1) to (6), the date of agreement,

and shall state that each holder of a junior lien may redeem in the order and manner provided in subdivision

9, beginning after the expiration of the mortgagor's redemption period under this section.

(d) The mortgagor's redemption period is two months from the date of sale, except that if the real estate

is subject to a federal tax lien under which the United States is entitled to a 120-day redemption period under

section 7425(d)(1) of the Internal Revenue Code, as amended, the mortgagor's redemption period is 120

days from the date of sale. The certificate of sale must indicate the redemption period applicable under this

paragraph.

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Subd. 6. Sale, how and by whom made. Except as provided in this section, the foreclosure sale must

be conducted and the certificate of sale shall be made and recorded in accordance with a foreclosure by

advertisement as provided in chapter 580. The certificate of sale must be filed or recorded within five days

after the sale. Affidavits of service, mailing, publication, and other affidavits or certificates permitted by

chapter 580, must be recorded with the certificate of sale, or within five days after the sale, in the office of

the county recorder or registrar of titles where the real estate is located, and when so recorded are prima

facie evidence of the facts contained in them.

Subd. 7. [Repealed, 1993 c 40 s 11]

Subd. 8. [Repealed, 1993 c 40 s 11]

Subd. 9. Creditor redemption. A person holding a junior lien upon the real estate or some part of the

real estate may redeem in the order and manner specified in sections 580.24 and 580.25, but only if before

the end of the mortgagor's redemption period under this section the creditor files with the county recorder

or registrar of titles of each county where the real estate is located, a notice of intention to redeem. If a junior

creditor fails to timely file a notice of intention to redeem as provided in this subdivision, or fails to redeem,

its lien on the real estate is extinguished.

History: 1992 c 547 s 1; 1993 c 40 s 3-9; 1999 c 11 art 4 s 5

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