Law provides more protection in foreclosures - KTTC Rochester, Austin, Mason City News, Weather and Sports

Law provides more protection in foreclosures


ST. PAUL, Minn. (AP) -- Minnesota homeowners facing foreclosure would have additional protection under a bill Gov. Mark Dayton is expected to sign.

The legislation requires banks and servicers to make loan modifications to everyone who's eligible. Also, loan servicers can't sell off a home until there's a clear yes or no on the loan modification.

University of Minnesota consumer law expert Prentiss Cox tells the Star Tribune a key element of the new law gives homeowners more time to modify their loan, thereby holding off a foreclosure sale. Property owners would have an additional 30 days under the state law.

Foreclosures have dropped in Minnesota in recent years, but remain high. Last year there were nearly 18,000 foreclosures, down about 16 percent from the previous year, but nearly triple the 2005 level.

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