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Financial Services Law Insights and Observations

Minnesota issues executive order modifying suspensions of evictions and writs of recovery and requesting foreclosure moratorium

State Issues Covid-19 Minnesota Evictions Mortgages Financial Institutions Foreclosure

State Issues

On July 14, the Minnesota governor issued Executive Order 20-79, which modifies the previous suspension of evictions and writs of recovery during the Covid-19 emergency. Among other things, the order limits the ability of property owners, mortgage holders, and others to file an eviction action, including for failure to pay rent or material violation of the lease, subject to certain exceptions. Further, the executive order limits residential landlords’ ability to terminate residential leases during the Covid-19 emergency. Officers must also cease executing writs of recovery of premises, subject to certain exceptions. Financial institutions holding home mortgages are requested to implement an immediate moratorium on all pending and future foreclosures arising from a substantial decrease in income or substantial out of pocket medical expenses caused by the Covid-19 pandemic, or any local, state, or federal governmental response to Covid-19. Financial institutions are also strongly urged not to impose late fees or other penalties for late mortgage payments related to the Covid-19 pandemic. The provisions of the executive order take effect on August 4, 2020, when Executive Order 20-73 (previously covered here) and Executive Order 20-14 (previously covered here) are rescinded.