MN HF3032

Prohibits mortgage lenders from selling foreclosed properties to buyers with unremedied local housing code violations in the property's jurisdiction.

Requires lenders who violate the prohibition to remedy all housing code violations and pay outstanding fines within 30 days of transferring title, including violations for which the purchaser is responsible on any property they own or formerly owned.

Allows lenders to request written information from local governments about prospective purchasers' unremedied violations or unpaid fines; lenders face no liability if the jurisdiction confirms no violations exist or fails to respond within ten business days.

Permits lenders to unilaterally terminate purchase agreements if they discover the prospective purchaser has unremedied violations or unpaid fines, regardless of the agreement's terms.

Gives lenders a cause of action to recover remediation costs from the purchaser plus interest at twice the judgment rate and reasonable attorney fees; effective for sales occurring on or after August 1, 2012.