Foreclosures by action postponement provisions modifications

This bill (SF 1962) prohibits lenders from enforcing "due-on-sale" clauses - where a loan becomes due immediately upon property transfer - during specific family-related transfers of residential property in Minnesota. It directly affects homeowners who transfer property through methods like transfer-on-death deeds, inheritance by spouses/children, divorce settlements, or certain trusts, preventing lenders from demanding full repayment. The key provision adds a new section to Minnesota law (§58.13, subd. 3) that blocks these clauses in the listed scenarios, with exceptions for reverse mortgages. It also creates a private right of action, allowing affected individuals to seek legal remedies, attorney fees, and costs for violations.