Legal Question in Real Estate Law in Minnesota

Re: Landlord Morgage Foreclosure

I think as long as you are in possession you need to pay rent. You would pay it to the "receiver" if one is appointed; presumably you would get notice of the appointment of a receiver. The landlord cannot sign you up for a long-term lease, but you already said you were on a month to month lease. You will want to verify when the period of redemption expires, as there is no guarantee that you can stay after that. You might contact the foreclosing attorney to see if they will pay you to move out.

Here is a copy of the statute that addresses your situation:

Table of contents for Chapter 504B

504B.151 Restriction on residential lease terms for

buildings in financial distress.

Once a landlord has received notice of a contract for deed

cancellation under section 559.21 or notice of a mortgage

foreclosure sale under chapter 580 or 582, the landlord may

enter into a periodic residential lease agreement with a term of

two months or less or a fixed term residential tenancy not

extending beyond the cancellation period or the landlord's

period of redemption until:

(1) the contract for deed has been reinstated or paid in

full;

(2) the mortgage default has been cured and the mortgage

reinstated;

(3) the mortgage has been satisfied;

(4) the property has been redeemed from a foreclosure sale;

or

(5) a receiver has been appointed.

This section does not apply to a manufactured home park as

defined in section 327C.01, subdivision 5.

HIST: 1999 c 199 art 1 s 11