MN SF2242

Limits lease terms when property is in foreclosure or contract for deed cancellation to no more than two months or the remaining cancellation/redemption period, unless holder agrees not to terminate for lease violations for at least one year.

Requires landlords to notify prospective tenants in writing of foreclosure status, cancellation/redemption period end dates, and tenants' rights to continued utility services if landlord defaults on payments.

Transfers existing leases and terms to new property owners following foreclosure and requires new owners to maintain rental properties, offer renewal leases to existing tenants, and charge fair market rent (exempts single-family homes and parts of multifamily properties new owner will occupy within 60 days).

Prohibits new owners from evicting tenants without cause, where cause includes non-payment of reasonable rent (if notice given), lease violations uncured after notice, nuisance/substantial damage, illegal use conviction, or refusal of reasonable access for repairs and inspections.

Establishes foreclosure moratorium allowing homestead property borrowers to stay foreclosure proceedings for up to two years by serving notice and making affordable monthly payments equal to the original payment or 41 percent of gross income, whichever is less, effective until June 30, 2012.