PTFA Sunset Provision Will Not Impact Minnesota Post-Foreclosure Eviction Proceedings

The Protecting Tenants at Foreclosure Act (PTFA) was enacted in 2009 to provide protections to tenants of properties that had gone through foreclosure. When enacted, the bill was set to expire at the end of 2012. However, the PTFA was extended to December 31, 2014 by President Obama. Permanent PTFA legislation was not passed this past congressional calendar, so the stated sunset provision is still effective.

Minnesota’s legislature has enacted statutory provisions that mirror that of the PTFA. As such, the sunset provision of the PTFA will have little, if any, impact on the post-foreclosure eviction process in Minnesota.

If a lease was entered into after mortgage origination but prior the expiration of the redemption period, the tenant is entitled to 90 days’ written notice to vacate. This notice must be given no sooner than the date the redemption period expires and must be effective no sooner than 90 days after the expiration of redemption.

In addition, Minnesota’s statute provides tenants with “bona fide leases” the same protections as the PTFA. As such, if a tenant has a bona fide lease which extends more than 90 days beyond the expiration of redemption, the holder of the Sheriff’s Certificate, or their successor in interest, must honor the lease until the end of the remaining lease term and provide 90 days’ written notice to vacate. Minnesota’s legislature defined a “bona fide lease” just as the PTFA did. A bona fide lease means: (1) the mortgagor or the child, spouse, or parent of the mortgagor is not the tenant; (2) the lease is the result of an arm’s length transaction; and (3) the lease or tenancy requires fair market rental payments.

Again, due to the mirrored language of Minnesota’s eviction statute, the PTFA sunset provision does not impact the Minnesota post-foreclosure eviction process.

We wish all of our clients a splendid New Year and look forward to continued growth as a valued business partner. If there are any questions on the Minnesota eviction process please do not hesitate to contact Orin Kipp at or 651-209-3338.