Foreclosure Ban Blocked

A Senate panel blocked an attempt to pass a one-year statewide moratorium on residential mortgage foreclosures.

Sen. Scott Dibble, DFL-Minneapolis, asked the Senate economic development budget committee to include in its spending bill a one-year ban on mortgage foreclosures. That could give financially struggling homeowners time to find ways to stay in their home, proponents said.

Committee Chairman David Tomassoni, DFL-Chisholm, earlier this session proposed a mortgage foreclosure moratorium, but said Wednesday he did not want the policy proposal in his budget bill. The amendment failed on a voice vote.

The foreclosure discussion was part of the committee’s debate over a two-year, $415 million spending bill.