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Can Minnesota take your house for unpaid property taxes?
Yes. It’s called tax forfeiture, and it’s slower than mortgage foreclosure but just as final. In Hennepin County, the path from unpaid taxes to forfeiture runs about three years for most homesteads. If you’re behind, you have time, but not forever. And like a mortgage foreclosure, you can sell first and pay the taxes from the proceeds. It’s one of the deadlines we map on our facing foreclosure page.
This is general information, not legal advice. Your county’s notices control your actual dates.
How the process works
- Taxes go unpaid. Minnesota property taxes are paid in two halves each year. Unpaid taxes become delinquent after the due date and start accruing penalties and interest.
- Tax judgment. The following year, delinquent taxes go through a statewide tax judgment process, and the property enters a redemption period.
- Redemption period. For most homesteads, the redemption period is about three years. For some other properties, it can be shorter. You can pay what’s owed, or sell, during this time.
- Notices. The county sends notices, including a notice of expiration of redemption before the deadline. Don’t ignore them.
- Forfeiture. If the redemption period expires unpaid, title forfeits to the state. The county manages and can sell the property.
What changed after Tyler v. Hennepin County
In 2023, the U.S. Supreme Court ruled in Tyler v. Hennepin County that a county couldn’t keep a former owner’s surplus equity after a tax forfeiture sale. The case started with a Minneapolis condo. Minnesota updated its law in 2024 to give former owners a way to claim surplus proceeds. That’s better than before, but the process takes time, the county controls the sale, and the price may be far lower than what you’d get selling it yourself.
Paying taxes from sale proceeds
Delinquent property taxes are just another payoff at closing. The title company gets the exact amount from the county, including penalties and interest, and pays it from the sale price along with your mortgage and any other liens.
| Line | Amount |
|---|---|
| Sale price | $228,000 |
| Mortgage payoff | -$96,000 |
| Delinquent taxes, penalties, interest (3 years) | -$14,800 |
| Net to seller | $117,200 |
Your options while in redemption
- Pay in full if you have the money.
- Confession of judgment / payment plan. Minnesota allows some owners to enter a payment plan with the county. Ask your county property tax office whether you qualify.
- Sell. List it if you have time and the house is market-ready, or sell for cash if you’re close to the deadline or the house needs work.
- Refinance if you qualify and have enough equity.
Why tax trouble and mortgage trouble travel together
If your lender pays your taxes through escrow, missed taxes usually mean missed mortgage payments too, and the lender may pay the taxes and add them to your loan. If you own the house outright, which is common with inherited houses, taxes may be the only debt, and forfeiture is the main risk. Either way, tax liens are one of the title issues we clear at closing.
What to do now
Look up your property on your county’s property tax site and find the delinquency year and redemption deadline. Call the county to ask about payment plans. Then call Ryan for a written comparison of paying, listing and selling for cash, with the tax payoff built in.