MN HF1886

Landlords with notice of foreclosure may only enter into short-term leases (maximum two months or time remaining in cancellation/redemption period) until the default is cured, mortgage satisfied, or property redeemed.

Landlords must notify prospective tenants in writing of foreclosure proceedings, redemption period end date, and tenant rights to continued utility services if landlord defaults on payments.

Upon foreclosure, tenants automatically become tenants of the new owner with existing lease terms transferred; new owners must maintain properties as rental, offer lease renewals, and charge fair market rent (exceptions for new owners occupying as primary residence within 60 days).

New owners may only evict tenants for cause, including nonpayment of reasonable rent, lease violations, nuisance/damage, illegal activity, or refusal of reasonable property access; evictions prohibited without cause until June 30, 2014.

Homeowners in foreclosure may stay proceedings for up to two years by serving notice and maintaining homestead status while making affordable monthly payments (the lesser of original payment or 41 percent of gross income) until June 30, 2014.