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Committee advances bill allowing licensed private selling officers and online foreclosure sales
Summary
The Judiciary and Public Safety Committee recommended Senate File 4747 as amended to the Senate floor after adopting three author's amendments that clarify fee responsibility, broaden the statute to other foreclosure types, and apply the process to foreclosures by action and advertisement. Supporters say licensed private selling officers and online auctions will increase competition and surplus funds for homeowners.
Sen. Dave Kreun, the bill sponsor, told the Judiciary and Public Safety Committee that Senate File 4747 would allow qualified private selling officers (PSOs) — licensed real estate agents or auctioneers — to conduct foreclosure sales and would permit those sales to be held online. He said administrative duties such as record-keeping, handling sale proceeds and issuing certificates would remain the sheriff's responsibility.
"None of the fees associated could be charged directly or indirectly to the homeowner," Sen. Kreun said while describing the A1 amendment that clarifies fee responsibility, noting the costs would be borne by the foreclosing lender. The committee adopted the A1, A2 and A3 amendments by unanimous voice and moved the bill as amended to the Senate floor.
Greg D. Castro, senior director of attorney firm relations at Auction.com, testified the bill modernizes Minnesota's foreclosure process by increasing participation and competition through online access and professional auction conduct. "Increasing the reach also helps ensure sales are closer to market value," Castro said, arguing that higher sale prices increase the chance of surplus funds returning to homeowners after junior lienholders are paid.
Committee members asked whether licensed attorneys should be allowed to serve as PSOs. Sponsor and members debated drafting challenges and whether to limit any inclusion of attorneys to those with real-estate experience. Sen. Westrom offered an oral amendment to include attorneys; the committee rejected that specific amendment by a hand-raise vote and Sen. Kreun said he would consult further with stakeholders. The committee then recommended Senate File 4747 as amended to pass and be referred to the Senate floor.
The bill's text preserves the sheriff's central role while authorizing a licensed PSO to conduct the auction itself, and the adopted amendments ensure the fee and scope clarifications apply across foreclosure types and procedures.
