Foreclosure sale postponement

A 2010 law tries to make a law from last year more inclusive.

The 2009 law gives a mortgagor or property owner permission to postpone a foreclosure sale by five months, thereby giving an owner extra time to pay up the arrearages after the time a normal sheriff’s sale would have been.

However, Rep. Joe Mullery (DFL-Mpls), who sponsors the law with Sen. Ken Kelash (DFL-Mpls), said certain mortgages had a little different redemption period, for example, if they were already paid down one-third of the principal or if they were on farmland over 40 acres. The law should put all mortgages on the same time frame.

Mullery said lenders like this because they don’t get properties back; owners are happy because it gives them more time to get caught up on payments and not lose their home.

Signed April 15 by Gov. Tim Pawlenty, the law takes effect May 15, 2010, and applies to foreclosure sales scheduled to occur on or after that date.

HF2708/ SF2559*/CH237