DFL legislators are proposing a yearlong suspension of mortgage foreclosures in Minnesota.
Supporters estimate the measure could help up to 15,000 people keep their homes.
Eligible homeowners would still be required to make minimum monthly payments during the year.
Senator Ellen Anderson, DFL-St. Paul, said a foreclosure deferment would give homeowners breathing room while Congress addresses the mortgage crisis.
"We think the federal government is going to take some action," Anderson said. "And this will get us a year. This will buy time for a year for those homeowners and lenders, and keep the process going, keep the homeowners in their homes and keep payments coming in while we wait for a federal solution, which we think will happen within a year, we hope."
The bill is expected to be heard in the Senate Commerce and Consumer Protection Committee on Thursday.