Committee adopts amendment clarifying homeowners' right to postpone foreclosure sales; SF3791 sent to floor
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Summary
Senate File 3791, with an author's A1 amendment, clarifies three situations where homeowners (and heirs) can postpone a foreclosure sale and the applicable redemption periods; the committee adopted the amendment and recommended the bill to pass and be sent to the Senate floor.
Senator Pappas presented Senate File 3791 and an A1 author's amendment intended to clarify the homeowner's right to postpone a mortgage-foreclosure sale in three specific circumstances: when a lender has postponed the sale, when a homeowner previously postponed and later faces a new foreclosure, and when a homeowner dies before a sale so heirs can postpone.
Colleen Daley, a staff attorney with Mid-Minnesota Legal Aid, told the committee the postponement tool allows homeowners to catch up on arrears or obtain loan modifications and can prevent loss of homes. "Postponement is a very good tool for a homeowner because it allows the homeowner to catch up, or to get a loan modification," Daley said.
Eric Cook, a foreclosing attorney who collaborated on the amendment language, said the changes would provide a "safe harbor" to clear title and help both lenders and homeowners by reducing clouds on title and avoiding confusion in practice.
The committee adopted the A1 author's amendment by voice vote and then recommended Senate File 3791, as amended, to pass and be referred to the Senate floor.
The bill moves next to floor consideration with the A1 clarifications included.