County auditors outline new tax-forfeiture rules after Tyler decision and announce online auction schedule

Stearns County land-records staff told the Board of Commissioners on Nov. 4 that changes after the Tyler v. Hennepin litigation require the county to treat three distinct groups of forfeited parcels differently and that new timelines will drive online auctions and surplus-claim procedures.

"Following that lawsuit, there's really 3 buckets that we're gonna be looking at now," said Mark Iverson, land records coordinator, describing legacy sales (forfeitures in 2015 and earlier), settlement-sale inventory (forfeitures from 2016–2023 subject to the state settlement), and new forfeitures (01/01/2024 onward) that must be offered in two sales within six months.

Key changes and process: Iverson said settlement properties (2016–2023) must be offered for sale and county boards must make a good-faith sales effort through 2029; proceeds are split under the settlement (he described an initial distribution where "75% goes to the state of Minnesota" and the county retains 25%). For properties forfeited on or after Jan. 1, 2024, staff must first offer the estimated market value (EMV) at the most recent assessed value for 30 days; if unsold, a second sale follows with a minimum bid equal to debt against the property (delinquent taxes, assessments, penalties, interest and costs).

Online auctions and buyer disclosures: The county selected PublicSurplus (in partnership with AMC) to run online auctions and said the platform allows flexible listing and broader exposure without in-person open houses. Alex Bussey, land records specialist, showed sample listings and said the county will disclose environmental constraints (wetlands) and other known issues. Staff warned that cleanup costs for unsold or blighted parcels can fall to county levy dollars and urged legislative fixes to mitigate that risk.

Auction timing and parcels: County staff said six properties in the new-forfeiture bucket are scheduled for the online process. Staff announced key dates: properties will be available for online viewing on Nov. 25; bidding opens Nov. 28 at 10:00 a.m.; the first EMV sale will close Dec. 16 at 12:00 p.m.; unsold properties will be re-offered in a second sale beginning Dec. 30 at 10:00 a.m. If a sale yields surplus equity, staff described a claims process that can include multiple claimants and a court determination when claims conflict.

Predatory services and owner outreach: Staff cautioned that third-party firms may contact prior owners offering to recover surplus equity for a fee and urged owners to work directly with county staff. Iverson noted the county performs extensive outreach to avoid forfeitures, including certified notices, sheriff delivery of notices when required and in-person checks for commercial properties. He urged property owners to contact the auditor’s office early if they receive delinquency notices.

Ending: The presentation was informational. Commissioners thanked staff for the detailed briefing. No board votes on tax-forfeiture policy or auction approvals were recorded at the meeting; staff said they will proceed with the announced online auction timetable and return as needed.