MN HF2613

Requires parties foreclosing on homesteads to provide notice to mortgagors of opportunities for foreclosure prevention counseling and mediation before commencing proceedings.

Establishes mandatory mediation process where debtors and creditors attempt to reach agreements on loan modifications, refinancing, or other resolutions within 60 days of mediation request.

Creates five-month redemption period (instead of six months) for mortgagors or their representatives who participate in mediation proceedings under sections 583.40-583.49.

Establishes Homestead-Lender Mediation Act account in state treasury, administered by Minnesota Housing Finance Authority and funded through $125 fee increase on foreclosure notices from July 1, 2010 through December 31, 2012, to cover mediator compensation and administrative costs.

Applies to foreclosure of mortgages on one to four family dwelling units where the owner occupies the property as principal residence; expires July 1, 2012, and is effective July 1, 2010 for foreclosures commenced on or after that date.