MN SF2170

Requires mortgage foreclosure parties to provide homeowners with notice of foreclosure prevention counseling and mediation opportunities before recording notice of pendency on one to four family homestead properties

Establishes mandatory mediation process through Office of Administrative Hearings when homeowner receives counseling but cannot resolve default within 60 days, with $160 mediation fee per party

Reduces homeowner redemption period from six months to five months if they participate in mediation proceedings, and allows four-month postponement of foreclosure sale instead of standard postponement rules

Prohibits deficiency judgments on foreclosures where mediation is conducted and applies to mortgages not refinanced or modified under federal Home Affordable programs, with exemptions for small local lenders with ten or fewer foreclosures in preceding twelve months

All mediation provisions expire July 1, 2012, with law effective July 1, 2010 for foreclosures commenced on or after that date