HF 1224 Minnesota House · 2025-2026 Regular Session

Postponement of foreclosure by sale provisions modified.

HF 1224 modifies Minnesota's foreclosure rules by prohibiting lenders from triggering due-on-sale clauses during specific home transfers. It directly affects homeowners transferring property via transfer-on-death deeds, death of a joint tenant, transfers to spouses/children, divorce settlements, or certain trusts, preventing lenders from demanding full loan repayment. The bill adds these five transfer scenarios to Minnesota law (Statute 58.13), exempting reverse mortgages. Affected homeowners or their beneficiaries can now sue lenders for violations to recover attorney fees and costs.

Issues: ✓ Housing

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2025 Last action Apr 7, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduction → 1st Engrossment · 5 edits · Mar 24, 2025

MODERATE

The bill was amended from its introduction to its first engrossment, significantly expanding its scope from a single provision limiting 'due-on-sale' clauses to a comprehensive set of rules governing foreclosure postponements. The new version adds detailed procedures for both lenders and homeowners to delay foreclosure sales, including specific notice requirements and automatic reductions in redemption periods for homestead properties.

Scope change

The bill's scope expanded from a narrow focus on protecting borrowers from due-on-sale clauses to a broader framework regulating the timing and notice requirements for both judicial and sheriff's foreclosure sales.

REQUIREMENT

New requirements for lenders to publish notices and mail notifications to occupants when postponing a foreclosure sale, including specific deadlines for sending these notices.

ELIGIBILITY

New rights for homeowners to postpone foreclosure sales by filing a sworn affidavit, which automatically shortens the time they have to redeem the property from six or twelve months to just five weeks.

TIMELINE

Specific effective dates were added, stating that the new foreclosure postponement rules apply to cases where the legal notice (lis pendens) was recorded on or after August 1, 2025.

SCOPE

The original text limiting due-on-sale clauses for specific family transfers and trusts was removed and replaced entirely with foreclosure postponement provisions.

ENFORCEMENT

The bill was restructured to amend multiple existing statutes (580.07 and 581.02) rather than adding a single new subdivision, integrating the changes directly into the current foreclosure laws.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2025

Lower · Passed

Committee report, to adopt

lower

Mar 24, 2025

Lower · Passed

Committee report, to adopt as amended and re-refer to Commerce Finance and Policy

lower

Feb 20, 2025

Introduced

Introduction and first reading, referred to Judiciary Finance and Civil Law

lower

1 primary · 0 co-sponsors