Foreclosures in the last year have increased significantly, according to HousingLink projections, a nonprofit corporation that has made it’s mission to connect people and communities to information that supports the resolution of their affordable housing problems, foreclosures for the Metro area are at 13,000 an increase of 83% from 2006 and foreclosures for Greater Minnesota are at 7700 an increase of 84% from 2006 for a state wide total of 21,000.  These area staggering numbers and if trends continue as they are 2008 projections are going to range from 29,000 – 38,000.  For more detailed information and a map showing the breakdown by county see their website at www.housinglink.org.  

For most of us foreclosure brings on many emotions from guilt to embarrassment and everything in between.  Many times it’s easier to just ignore it until it’s too late.  Please don’t make that mistake, Minnesota offers a vast network of organizations to help, if you look for help soon enough.  Vast amounts of legitimate information can also be found at www.hud.gov  and www.fha.gov.   Even for those fortunate enough not to be in a foreclosure situation there is a huge impact.  Vacant and foreclosed properties have a huge impact on neighborhoods and communities.  For the buyer with mean to take advantage of this buyers market vacant and badly neglected properties send a message there must be something wrong with this neighborhood and they move on. 

Although the above numbers are quite significant when looking at the picture nation wide we here in Minnesota are in better shape than some other states in the union.  As a Realtor, I don’t want to send the message the sky is falling, but I do think it’s imperative that we all are tuned into the situation and keep our heads out of the sand.  If you know of a friend or relative in trouble or think they may be in trouble be sure that they know the vast amount of help and advice available to help, Minnesota is state that has help available in every county.  The sooner the better, at a certain point in the process there is no return, foreclosure is inevitable and in some cases if the income just isn’t there to cover the expenses it’s just better to sell before it’s too late.  Home owners need to realize the value in talking to their lender before it’s too late; many are willing to try to work something out at this point in the game.  When deciding what to do be sure to check out the links mentioned above before making any decisions.  In many cases we need to remember if a deal sounds to good to be true and the lender isn’t one you have heard a lot about it very well could be too good to be true.  The map below provided to us by RealtyTrac shows the foreclosure hot spots across the country. 

So for those that aren’t sure what is the foreclosure process in Minnesota? 

1 missed payment – the lender calls and sends a letter to homeowner

2 missed payments – account is transferred to the collections department

3 missed payments – collection efforts are continued

4 missed payments – account transferred to foreclosure department (here legal fees begin to accrue)

5 missed payments – account forwarded to foreclosure attorney

6 missed payments – foreclosure attorney schedules sheriff’s sale date (date published for 6 weeks)

7 missed payments – homeowner served with notice of sheriff’s sale (4 weeks prior to sale)

8 missed payments – sheriff’s sale will occur (homeowner has reached the deadline to bring mortgage current)

Immediately following the sheriff’s sale, 6 month redemption period starts, home owner can occupy home and payoff entire mortgage.  At the end of 6 month period if mortgage has not been paid home owner needs to vacate property or eviction will occur. 

In many cases problems were present before the 1^st missed mortgage payment, but life is busy and for many it’s just easier not to pay attention to the problems when they first start.  Pride can get in the way, life can be complicated filled with ups and downs the best thing anyone can do for themselves and their family is to ask for help.  Take advantage of the resources available here in Minnesota, some places don’t have these tools in place.  You will feel a whole lot better in the end if you stop and take charge sooner rather than later.  I hope you have found this information to be valuable, thanks for reading.  

 Debbie Danielson

Edina Realty

952-945-3186 Office

952-457-8239 Cell

debbiedanielson@edinarealty.com

                         My Core Values...

                             To Always:
Live by the 'Get By Giving' philosophy
Make my Client's number one goal, My number one goal
Live up to my standards, despite temptations to lower them
Be willing to work toward the common good