HF 1027 Minnesota House · 2025-2026 Regular Session

Mortgage foreclosure redemption and surpluses provided.

HF 1027 updates Minnesota's foreclosure process to better handle surplus funds after a property sale. If a foreclosure sale leaves $100 or more in surplus after paying the mortgage, taxes, and sale costs, the sheriff must hold that money during the owner's redemption period. The sheriff must mail written notice to the property owner about the surplus and provide contact details for the Minnesota Homeownership Center to help with redemption options. Owners can also request in writing to apply the surplus toward their redemption amount during the redemption period.

Issues: ✓ Housing

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

House Passage

Apr 2025

Senate Passage

Governor

Introduced Feb 17, 2025 Last action Apr 22, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduction → 1st Engrossment · 3 edits · Apr 1, 2025

MINOR

This bill update clarifies how surplus funds from property sales are handled and extends the waiting period before a foreclosure can proceed after a homeowner requests loss mitigation. The changes ensure owners are notified at their correct address if no street exists and require a longer 60-day wait instead of 30 days for foreclosures to resume after a mitigation application.

Scope change

The bill's scope regarding surplus fund distribution and foreclosure timelines has been expanded to cover properties without street addresses and to provide homeowners more time to resolve loss mitigation issues.

REQUIREMENT

Surplus notices must now be sent to the taxpayer's address on the property tax statement if the property lacks a street address, ensuring owners are reached even if the physical address is incomplete.

The criteria for the sheriff to petition the court regarding competing claims to surplus funds were slightly broadened to include situations where claims appear not meritorious.

TIMELINE

The mandatory waiting period before a foreclosure sale can resume after a loss mitigation application was increased from 30 days to 60 days, giving homeowners more time to resolve their financial situation.

Floor votes · House Apr 10, 2025

How they voted

133–0

Passed

Total votes 133

Apr 10, 2025

D Democratic66

66 Yea

100% Yea

R Republican67

67 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 22, 2025

Committee

Referred to Judiciary and Public Safety

upper

Apr 22, 2025

Introduced

Introduction and first reading

upper

Apr 22, 2025

Introduced

Received from House

upper

Apr 10, 2025

Lower · Passed

Bill was passed

lower

Apr 1, 2025

Lower · Passed

Committee report, to adopt as amended

lower

Feb 17, 2025

Introduced

Introduction and first reading, referred to Judiciary Finance and Civil Law

lower

1 primary · 2 co-sponsors