Falling behind on HOA dues is stressful, and a lot of what's written about HOA foreclosure online is either vague or written for a different state entirely. Here's what actually applies in Minnesota, with the real thresholds.
The real threshold: two conditions, both required
Starting January 1, 2027, an association cannot begin foreclosure for unpaid assessments unless both of these are true:
- The balance owed is at least $5,000, and
- That balance has been outstanding for at least 180 days.
Both conditions have to be met — a $6,000 balance that's only been outstanding 60 days doesn't qualify, and a balance outstanding 200 days but under $5,000 doesn't either.
These thresholds exist specifically to keep foreclosure as a last resort for genuinely large, longstanding delinquencies — not a fast response to a single missed payment.
The attorney-fee nuance most explanations get wrong
This is the part that's genuinely easy to get wrong, and worth being precise about: Minnesota law caps attorney fees at $1,500 for ordinary collection actions — but that cap does not apply to foreclosure. Under Minn. Stat. § 515B.3-116(h)(4), attorney fees specifically for foreclosure by advertisement are set by the association's own declaration or bylaws, not by a fixed statutory dollar limit.
In practice, that means the fee an association can charge for foreclosure-related attorney work depends on what your specific association's governing documents say — not a single number that applies statewide. If you're facing foreclosure, the number to ask for is what your own association's declaration actually specifies, not a generic figure.
| Action type | Attorney fee limit |
|---|---|
| Ordinary collection action | $1,500 (statutory cap) |
| Foreclosure by advertisement | No statutory cap — set by declaration/bylaws (Minn. Stat. § 515B.3-116(h)(4)) |
Where this comes from
These figures come from 2026 Minn. Laws ch. 82 (SF1750), the same bill covered in full in our overview of what Minnesota's new HOA law changes, and from the existing text of Minn. Stat. § 515B.3-116 governing the foreclosure attorney-fee question specifically. If you're researching a specific property, JoanTool also maintains a searchable Minnesota foreclosure directory.
- Minn. Stat. § 515B.3-116 (assessment liens and foreclosure)
- 2026 Minnesota Laws, chapter 82 (Senate File 1750)