Tax Foreclosure in Minnesota: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Minnesota uses a tax lien/forfeiture system. Properties with delinquent taxes are subject to a forfeiture process that eventually transfers title to the state.
How It Works
Property taxes in Minnesota are collected by the county. Under Minnesota Statutes Chapter 279, when taxes become delinquent on January 1 following the due date, the county files a judgment and tax lien. If taxes remain unpaid, the property goes through a multi-year process leading to forfeiture to the State of Minnesota under Minn. Stat. Chapter 281.
After forfeiture, the county can sell the property at a public auction, with proceeds going to the taxing authorities.
Redemption Period
Minnesota provides a 3-year redemption period for most homestead properties (Minn. Stat. § 281.17). For non-homestead properties, the redemption period is generally 1 year. During the redemption period, the owner can pay all delinquent taxes, penalties, interest, and costs to the county auditor to reclaim the property.
After Tyler v. Hennepin County (2023) — the landmark case that originated in Minnesota — the state must return surplus proceeds from tax-forfeited property sales that exceed the tax debt owed.
Key Programs and Exemptions
Property Tax Refund (Circuit Breaker): Under Minn. Stat. § 290A, qualifying homeowners may receive a refund based on income and property taxes paid. Apply with your Minnesota income tax return by August 15.
Senior Citizens' Property Tax Deferral: Under Minn. Stat. § 270A.60 et seq., homeowners 65+ with household income below the statutory threshold can defer a portion of their property taxes. The deferred amount becomes a lien payable when the property is sold. Apply through the Minnesota Department of Revenue.
Disabled Veterans Homestead Market Value Exclusion: Under Minn. Stat. § 273.13, subd. 34, veterans with a service-connected disability rating of 70% or more may qualify for a market value exclusion on their homestead.
Where to Get Help
- Legal Aid State Support: Mid-Minnesota Legal Aid at (612) 332-1441 or mylegalaid.org; Southern Minnesota Regional Legal Services at (651) 222-5863 or smrls.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Minnesota's 3-year homestead redemption period provides time, but interest and costs increase every month. Contact your county auditor-treasurer immediately.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county or a licensed attorney. AuctionBlock.org is a mission-driven company.