This is probably going to be an immensely popular piece of legislation that will be passed.  Impact on how the market – it’s anyone’s guess.  From the Daily Globe:

Minnesota Attorney General Lori Swanson outlined a plan Thursday to force mortgage lenders to negotiate with homeowners before foreclosing on their homes.

With an anticipated 36,000 Minnesota homeowners facing foreclosure in 2009, Swanson said she hopes lawmakers will approve the “Homeowner-Lender Mediation Act” in the upcoming legislative session. She said it’s modeled on the Farmer-Lender Mediation Act that helped save family farms during the 1980s.

“Minnesota was the beacon for farmers around this country in the 1980s when we adopted the Farmer-Lender Mediation Act. We could be a leader again this year,” she said at a Capitol news conference.

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