MINNEAPOLIS, Minnesota — Pre-foreclosure notices are rising in Minnesota, as more homeowners are now at risk of losing their homes. 

Minnesota Homeownership Center provides training and capacity building support to a statewide network of homebuyer education and foreclosure prevention advisors. The organization tracks pre-foreclosure notices throughout the state. Data from its network of 27 agencies shows pre-foreclosure notices in 2025 were at 18,616 — the highest number since 2015, the first year after the foreclosure crisis ended. 

The quarterly total has been above 5,000 just three times in the past 10 years, including the fourth quarter of 2025.

In the seven-county Twin Cities metro area, pre-foreclosure notices from 2024-2025 jumped nearly 50%. 

“We’re not in a foreclosure crisis, but we are starting to see the numbers of pre-foreclosure notices… reach the levels that we were at pre-COVID,” said Kirstin Burch, executive director of the Minneapolis-based nonprofit PRG, Inc. 

The housing counseling organization and community developer found that in Minneapolis alone, there’s been about a 30% increase from 2024-2025. Burch said early numbers for 2026 show that trend continuing or even rising higher. 

“We had a bit of stabilization during COVID with some of the relief that was available to homeowners. That is no longer available. But we’re also seeing big rises in property taxes and homeowners insurance which is putting a lot of strain on households right now,” Burch said. 

According to a new report from Insurify, Minnesota’s home insurance rates have jumped 64% since 2023 — the largest increase of any state. 

“Since the end of 2023, Minnesota has gone from the 21st most expensive state for home insurance to the ninth most expensive,” Insurify stated. 

The report predicts Minnesota homeowners will see premiums increase 4% this year to $3,654. A main reason for the increase was due to storms, specifically hail and winds. 

“A lot of people believe that the only thing that will help them kind of solve this issue is financial resources which we don’t have a lot of right now, if any. But there are a lot of options available to homeowners if they reach out early and connect with an advisor at an organization like ours,” Burch said. 

“Groceries are expensive; insurance is expensive; property taxes are high. Everything is increasing,” said Theressa Ruiz, program manager for homeownership services at PRG. 

Ruiz helps homeowners find ways to keep their home. For example, helping a client shop around for insurance. 

“Knowing that that option is there and that you can shop around for your insurance, some people don’t know that,” Ruiz said. 

Ruiz added, “The sooner you reach out, the more time we have to work on the prevention of your foreclosure.”

PRG said they are seeing a wide range of homeowners impacted, including seniors and middle-class families. 

“I think there is an idea that people are somehow making a misstep or there’s things that are compiling that put them in this position where they’re at risk of losing their home, but people are operating with very thin margins,” Burch said. 

PRG recommends reaching out, even before a pre-foreclosure notice, if you’re struggling to pay your mortgage. 

They help homeowners in the seven-county metro area get back on track for free. 

Right now, appointments are running about five weeks out.