Minnesota passed a bill amending loss mitigation requirements for servicers of first lien mortgage loans and the state’s foreclosure laws. Under the bill, the mandatory waiting period requirement was amended by adding “if 60 days have passed” (previously, there was not a number of days requirement) to allow the servicer to proceed to refer the mortgage loan to an attorney for foreclosure, move for an order of foreclosure, seek a foreclosure judgment, or conduct a foreclosure sale since the occurrence of 1 of the following (whichever is applicable):
- All of the following conditions are met:
- The borrower is not eligible for any loss mitigation option;
- The borrower is informed of the determination in writing; and
- Any applicable appeal period has expired without an appeal or any appeal has been properly denied;
- A written loss mitigation offer is made and the borrower fails to accept the offer (within the time frame specified in the offer or within 14 days after the date of the offer, whichever is longer); or
- The borrower declines a loss mitigation offer in writing.
In addition, foreclosure laws were amended related to distribution of surplus of sale proceeds for nonjudicial foreclosures, redemptions rights for both judicial and nonjudicial foreclosures, and postponement of foreclosure sales requirements to include judicial foreclosures (previously, postponement of foreclosure sale requirements only applied to nonjudicial foreclosures).
Revisions related to loss mitigation requirements, distribution of surplus of sale proceeds, and postponement of foreclosure sales went into effect August 1, 2025. Revisions related to redemption rights become effective January 1, 2026.
Click to view Minnesota House Bill 2432: https://www.tenaco.com/wp-content/uploads/2025/09/MN-HB-2432-05-24-25.pdf
