The Foreclosure News Out Of Minnesota May Be Sending A Mixed Message

Even when there may be a small cause forFund and Housing Link project predicted 8,721
celebration regarding the foreclosure crisis inforeclosures over the course of 2007. Major
Minnesota news came out that put a damper onfallout resulting from this is the number of
things. Minnesota remained yet again among theabandoned properties across the state will
lowest in the country in foreclosure rates, but stilladversely impact property values not just for
saw an almost 80% increase over last year.homes near foreclosed properties but also entire
Whether this is a result of population density asneighborhoods.
compared to other states or not the increaseSome Minnesota Foreclosure Facts
seems to be proportional with what is happeningFor a homeowner looking to stop foreclosure in
in other areas.Minnesota is might be prudent to have at least a
Minnesota is no different from other states inpassing understanding of the foreclosure process
regards to the primary reason for the currentin that state. Non-judicial foreclosure is the primary
foreclosure crisis. Aggressive lenders using dubiousmethod of foreclosure in Minnesota; however
loan practices are yet again the primarythere are very stringent requirements for the
contributor to this problem. To their credit thenotice and power of sale language in the legal
Minnesota government took prompt, proactivedocuments.
and responsive action to this matter by passingThe foreclosure timeline in Minnesota is typically
over a hundred bills to deal directly with60 days from the time you miss your first
foreclosures and abuses in lending.payment until a Notice of Default or Notice of
In other news Minnesota housing officials attendingSale is issued to your actual foreclosure date and
a summit in St. Paul earlier this year reported thatsale. Minnesota borrowers have the right of
the surge in foreclosures encompassing the stateredemption and are allowed deficiency judgments.
may be much higher, at least twice as high, thanLenders in Minnesota may also chose to go to
was previously reported. Projections for 2007court for what is known as a judicial foreclosure.
predict the rate of foreclosures to range from 1This type of proceeding is where the court issues
in every 1000 households in rural counties up to 2a final judgment on a foreclosure.
of every 200 households in some of the harderIt is apparent that Minnesota has hardly escaped
hit counties. One area being hardest hit, Northernthe growing foreclosure epidemic gripping the
Minneapolis, has taken a pounding with some 1,400nation. Even with the state government's steps to
foreclosure auctions seen in the past year and ahelp curb the crisis the fact remains that
half.foreclosures are still on the rise and there appears
Earlier in 2007 the Greater Minnesota Housingto be little relief in site.