MN HF1377

Requires mortgage servicers and lenders to comply with loss mitigation obligations before initiating foreclosure on owner-occupied residential properties with no more than four dwelling units, effective August 1, 2013 through January 1, 2018.

Prohibits "dual tracking" where servicers continue foreclosure proceedings while a borrower's complete loan modification request is pending; servicers may only proceed if borrower is ineligible, rejects the offer, fails to accept within 14 days, or defaults on a modification agreement.

Requires servicers to wait until a mortgage loan is more than 120 days delinquent before recording a notice of pendency or lis pendens.

Establishes an appeal process allowing borrowers to challenge loan modification denials if the modification request was submitted 90 or more days before the foreclosure sale, with servicer determination within 30 days.

Updates foreclosure notice requirements to include contact information for mortgage foreclosure prevention counselors and clarifies affidavit requirements documenting compliance with loss mitigation and anti-dual tracking provisions.