Minnesota lawmakers consider three foreclosure bills
The proposed bills would work together to address the deepening foreclosure crisis in Minnesota. From the StarTribune:
- One would prod homeowners facing foreclosure to get help, even forwarding their phone numbers to foreclosure prevention counselors. It would also give tenants notice of pending foreclosures and spell out the terms for owners to get their homes back after a sheriff’s sale by paying off the entire mortgage and foreclosure fees.
- Another bill would erase eviction notices from the records of renters removed from foreclosed properties.
- The third would help authorities to declare vacant properties abandoned so new owners could take over faster.
I think many homeowners could use a bit of prodding to take action, and tenants in foreclosed properties need help, as well. And it only seems logical not to punish tenants with an eviction when their landlord could not keep up with their mortgage properties. But while I sympathize with the sentiment behind the third bill, I wonder whether how prone to misuse it will be.
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Tags: foreclosure, law, legislation, real estate
Filed under: Consumer Law & Policy, Coping With Credit & Debt
Tags: foreclosure, law, legislation, real estate
Filed under: Consumer Law & Policy, Coping With Credit & Debt
1 Comment on “Minnesota lawmakers consider three foreclosure bills”
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I think you’re right about the third bill. Some homeowners may have a second home that they move into to avoid being evicted suddenly from the foreclosed house. They haven’t abandoned it, per se, but they move out because they do not understand the foreclosure process and are afraid of the sheriff showing up any time to kick them out. Once the government and the bank declare the property abandoned and change the locks, though, it can be very tough for the owners to get the property back under their control. Now they have to deal with the bank to save the home from foreclosure, and try to get the keys to their own property back from the government. In some cases, that bill might just make things worse for the very people the first two bills are meant to help.