Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-07-13
Mortgage Moratorium
Act Declared Valid
Law Passed by Last Session of Legislature is
Held Constitutional by State Supreme
Court; Justified by Economic
Conditions.

Lie oldl6 OupI ellie SOuII lids up-
held the mortgage moratorium act
passed by the last session of the Leg
islature by vote of six to one which
is heralded as of much help to farm
erS and home owners at this time. 1t
will afford the mortgagor more time
to arrange for federal refinancing Of
the loan. Estimates are that 10000
Minnesota farmers and home owners
will be helped to save their homes
through the legislative act and the
subsequent Supreme Court decision.
Nineteen thousand farmers have
lost their homes through foreclosure
and tax sale since 1926. The increas-
ing rate had reached 5000 for last
year.
The decision enables mortgagors to
get postponement of foreclosure sale
until not later than May 1. 1894, or an
extension of their period of redemp-
ton until not later than May 1, 1885.
A statement prepared in the office
of Attorney General Harry H. Peter
son concerning the mortgage mora
forum relief law, its purposes and eff
feet, reads as follows:
Attorney Generals Statement.
"The Legislature of 1893 passed a
mortgage foreclosure moratorium act
on the 18th day of April, 1888, which
was approved by the governor on that
day. This act applies to mortgage
other real estate.
This act provides three remedies
for the relief of owners of land sold
on mortgage foreclosure. These rem
edieS are as follows:
Il. The owner of such lands
may, by court order, stop foreclo-
sure by advertisement and COM
pei the foreclosure to proceed un-
der the protection of the court.
"2. The land owner may by
court order secure extension of
the time allowed by law for re-
demption to a date not later than
May 1, 1885.
80. Suits cannot be brought for
deficiency judgments during the
time allowed for redemption.
I'm order to take advantage of the
first remedy, the owner of the mort
gagged premises must apply to the Dis
trict Court for relief and serve legal
papers on the party foreclosing, or
his attorney, before the sale is had.
Upon hearing on such application
the court may order the foreclosure
to proceed, if at all, by court action,
in which the sale will have to be
made under the supervision of the
court which has authority to refuse
to approve of a sale not made for an
adequate amount. The party applying
for relief under the first remedy must
pay expenses incurred by the party
foreclosing, exclusive of attorneys
fees. These expenses would probably
amount to between $500 and $500
| in the ordinary cases, depending some
what upon the time when the appli-
cation is made.
Apply to Court.
"The owner of the mortgaged prem.
ises does not need to take advantage
of the first remedy, in order to secure
relief under the second remedy. At
any time before the expiration of the
year of redemption from the sale of
the mOrtgaged premises, he may apply
to the District Court for an extension
of the time of redemption on written
notice, which must be served upon
the party foreclosing or his attorney,
before the expiration of such period
of redemption. The court then, upon
a hearing, may extend the time of re-
demptlOn to a date not later than
May 1, 1885, at the same time order
ing the party applying for relief to
pay such amounts and perform such
conditions at such times and in such
manner as the court shall deem just
under the circumstances. If during
the period of redemption, as extended,
| circumstances so change that the
owner of the land is no longer able to
comply with the conditions imposed
by the court, then the court upon the
application of such Land owner, has
the power to make such revision of
the original order as the changed
circumstances warrant. The party
| foreclosing also has the right to make
an application to the court for like
order on account of changed condi-
tions during the extended year of re-
demptiOn. This remedy is available
to the owners of all lands which are
sold in mortgage foreclosure proceed
ings within two years after~the pass
age and approval of this act, and it is
also available to all owners of real
estate, which was sold in mortgage
foreclosure proceedings before the
passage and approval of this act.