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Post-PTFA: Minnesota

Posted By USFN, Tuesday, May 05, 2015
Updated: Friday, September 25, 2015

May 5, 2015 

 

by Kevin Dobie
Usset, Weingarden & Liebo, PLLP
USFN Member (Minnesota)

Although the federal PTFA expired on December 31, 2014, the PTFA requirements and tenant protections continue in this state, pursuant to Minnesota Statutes section 504B.285 subdivision 1a. The tenant notice requirements for foreclosure properties in Minnesota started in 2008. The first version of the statute called for a two-month notice. In 2010, after the enactment of the PTFA, the Minnesota legislature changed the statute to mirror the 90-day requirements in the PTFA, with two further requirements. In addition to the PTFA requirements, the Minnesota statute provides that: (1) the 90-day notice must be given to any tenant — not just a bona fide tenant; and (2) a tenant (or a bona fide tenant) is required to pay rent to the foreclosure purchaser and abide by all terms of the lease.

In 2013, the Minnesota legislature deleted the December 31, 2014 sunset provision in the state statute. Therefore, foreclosure purchasers must provide the notice requirements and honor bona fide leases for the foreseeable future. Accordingly, asset managers should continue to investigate whether the occupants are tenants and advise eviction counsel as soon as possible. Law firms and asset managers sending notices should reference the state statute rather than the PTFA; but, in general, the question of whether the PTFA applies to foreclosures completed before December 31, 2014 (or leases entered into before that date) is irrelevant.

In Minnesota, foreclosure purchasers must continue sending the 90-day notices for tenants, and must continue honoring bona fide leases. As for non-tenant occupants, there is no notice requirement; and foreclosure purchasers may commence eviction actions immediately after the redemption period expires.

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