According to a 2000 U.S. Census report, approximately 4 percent of Minnesota residents live in manufactured homes. These homes are not considered real property, but rather personal property. Because of this, owners are not given the same protections as owners of single-family homes provided under Minnesota predatory lending laws passed in 2007.
A new law, sponsored by Rep. Paul Gardner (DFL-Shoreview) and Sen. John Marty (DFL-Roseville), provides some of that protection.
Signed into law May 4 by Gov. Tim Pawlenty, the law increases from 30 to 60 the days an owner of a manufactured home has to catch up on missed loan payments. The law also prohibits certain predatory lending practices such as churning, which is arranging for a manufactured home loan for a borrower when the loan “does not provide a reasonable, tangible net benefit to the borrower.”
The notice of default must also include contact information for local foreclosure prevention organizations. The law is effective Aug. 1, 2008.
HF3477*/SF2917/CH273
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