Minnesota Foreclosure Activity Continues to Plummet

Sheriff’s Sales drop to less than 7,000 in the first half of 2013

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From the Minnesota Homeownership Center's most recent press release:  -- During the first half of 2013 the number of completed Sheriff’s Sales, the final step of the foreclosure process in Minnesota, has fallen to the lowest level since the beginning of the housing crisis.  Statewide, there were 6,795 foreclosures in the first two quarters of 2013. This number is 29 percent less than the same period of 2012, with a greater decline seen in the Twin Cities metro area (down 33 percent) than in Greater MN (down 23 percent).

The “2013 Semi-Annual Foreclosures in Minnesota” report was released Thursday by the Minnesota Homeownership Center using research provided by HousingLink and adds to other recent evidence showing that fewer Minnesota homeowners are struggling with mortgage payments than at any time since 2006. 

While more than 1,100 homes each month were lost to foreclosure in the first half of the year, this number pales in comparison to 2010, when Minnesota was experiencing the worst of the housing collapse.  During the first half of 2010, lenders were auctioning off more than 2,100 homes each month.

“Modest improvements in Minnesota’s economy and increasing home prices, combined with improvements in how banks and lenders deal with struggling homeowners are positively impacting the number of homes lost to foreclosure,” stated Ed Nelson, Marketing and Communications Manager for the Minnesota Homeownership Center. “However, while the most recent data is encouraging, we can’t lose sight of the fact homes are still being lost to foreclosure at rates that exceed twice those of historic levels.”

Homeowners that are struggling to make mortgage payments are encouraged to seek help from a certified foreclosure prevention specialist that is a member of the Homeownership Advisors Network as soon as possible.  Waiting limits a homeowner’s option.   To find a free local foreclosure specialist, click here, or call the Minnesota Homeownership Center at 866-462-6466.   

Foreclosure Prevention Starts Before the Mortgage Is Even Signed

Homebuyer education dramatically decreases probability of delinquency 

New research from NeighborWorks America conducted by Neil Mayer & Associates and the credit bureau Experian finds that homeowners that receive pre-purchase education and counseling services, like those offered by the Homeownership Advisors Network in Minnesota, are 30% less likely to become seriously delinquent on their mortgage in the first two years after closing.

The study looked at over 75,000 mortgages originated between 2007 and 2009 to see the effect pre-purchase education and counseling services had on the probability of a loan becoming seriously delinquent in the first 24 months:

The research shows that the investment the Minnesota Homeownership Center has made in homebuyer services over the last 20 years helped lessen the effects of the foreclosure crisis on Minnesota.

In the last ten years alone, almost 50,000 households have graduated from Home Stretch.  Thanks to the knowledge they received in Home Stretch, hundreds of homeowners avoided falling seriously delinquent on their mortgage.  For more information on Home Stretch, check out our most recent Homebuyer Services report, here.

NOW... Minnesota homebuyers have the option of completing this important workshop in person (Home Stretch) or ONLINE via Framework.    Framework is a high quality, interactive way to learn how to be a smart, confident and successful homeowner, FRAMEWORK™ provides the facts you need to become well-informed about every step in the process.

In addition, the Bipartisan Policy Center’s Housing Commission recently reiterated the important value of quality housing counseling.  According to the report, Housing America’s Future, ‘…housing counseling can improve prospective borrowers’ access to affordable, prudent mortgage loans, especially for families that otherwise might not qualify or who may experience other barriers to mainstream lending.’

Better access to quality loans, fewer delinquencies.
That’s why we support homebuyer services in Minnesota.

Lowest Number of Foreclosures Since 2006

17,895 homes sold at Sheriff’s Sale in Minnesota in 2012

The Minnesota Homeownership Center has just released its latest report on the number of foreclosures - as counted by completed Sheriffs' Sales - for every county in Minnesota.

The report, titled “Foreclosures in Minnesota,” identified a total of 17,895 foreclosures in Minnesota in 2012, a decrease of 16% from 2011. 

You can view the full report, here.

“We continue to see improvement in the housing market and we know that our foreclosure prevention efforts in Minnesota, combined with improvements in how banks and lenders deal with struggling homeowners are having a positive impact on the number of foreclosures,” stated Julie Gugin, Executive Director of the Minnesota Homeownership Center. “While we’re certainly moving in the right direction, we can’t lose sight of the fact that the number is still three times higher than it was before the crisis began. ”

Struggling homeowners are encouraged to seek help from a certified foreclosure prevention specialist that is a member of the Homeownership Advisors Network as soon as possible.  

Waiting limits a homeowners options.   If you, or someone you know is struggling with mortgage payments... visit www.hocmn.org or call the Minnesota Homeownership Center at 866-462-6466.  

Founded in 1993, the Minnesota Homeownership Center is celebrating 20 years of promoting successful homeownership throughout the state and has been one of the state’s primary responders to the foreclosure crisis.     

More Good News For Housing in Minnesota

Preforeclosure Notices Resume Their Drop 


On  Thursday, August 2nd, the Minnesota Homeownership Center released its data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network for the second quarter of 2012.


Notices received dropped 17% from the first quarter of 2012, reaching their lowest point since the law was enacted in late 2008.


In the second quarter of 2012, members of the Homeownership Advisors Network received 9,995 preforeclosure notices, 17% fewer than the previous quarter, and 25% fewer than the during Q2, 211:

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Encouragingly, the metro area also experienced a similar 16% drop in the number of notices received:

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There are, however, a few areas of the state that we’ll need to continue to monitor as they have bucked the downward trend of the rest of the state: the City of Minneapolis and, to a lesser degree, Carver County:

While the overall numbers are certainly cause for celebration… we also have to remember that this brings the year-to-date total of Preforeclosure Notices received by Minnesota homeowners to 22,101. 


More than 22 THOUSAND Minnesota families continue to struggle with mortgage payments.  You can help them by sharing the message that help is available.  For free.

This online advertising campaign (more info here) is already helping hundreds of struggling homeowners by connecting them with information, resources and effective foreclosure prevention help.  Join us in spreading the word by placing them on your blog/website… or asking your employer, social service agency or local government to post them.   For electronic copies of these ads, visit: http://hocmn.org/en/bannerpage.cfm.

Pre-Foreclosure Notices Continue Unabated

The Minnesota Home Ownership Center has compiled the pre-foreclosure notices received by the statewide network of Housing Counselors through the end of the third quarter (September)... and the upward trend continues!

The most recent quarter (July through September) recorded the second-highest number of pre-foreclosure notices since the MN legislature enacted the notices in the third quarter of 2008.  Year-To-Date, the total number of pre-foreclosure notices received has now exceeded 54,000.

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Here's the breakdown for the number of pre-foreclosure notices received by members of the Home Ownership Advisors Network in the 7-County Metro Area:

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NEW:  For the first time since the Center started tracking and publishing the pre-foreclosure notice totals in June of 2009, we are now tracking the running quarterly totals of notices received to see where the trend is heading: 

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This information makes it hard to forecast anything but continued foreclosure activity and continued mortgage difficulties for Minnesota families.  As always... if you're struggling with your mortgage payments - or think you might fall behind soon - don't wait!  There is a network of non-profit agencies that can help.  Contact them today.  For additional information about foreclosure prevention in Minnesota - visit the Center's foreclosure prevention resource page here.

Pre-Foreclosure Notices, October 2009

Interesting information in the October 2009 Pre-Foreclosure Counts!

The Center has compiled the Pre-Foreclosure Notice Counts for the Month of October, 2009... and some interesting information has arisen. Statewide, the number of Pre-Foreclosure Notices has DROPPED 11.6% from September to October.

HOWEVER... Pre-Foreclosure Notices have RISEN slightly in the Twin Cities Metro.

The trend lines continue to show an upward climb - and remember, these numbers are self-reported by lenders/servicers or their attorneys.

Here are the January through October, 2009 STATEWIDE Pre-Foreclosure Numbers:

And here are the January through October, 2009 TWIN CITIES METRO AREA Pre-Foreclosure Numbers:

Pre-Foreclosure Notices, September 2009

It was brought to our attention (Thanks, Aaron!) that we hadn't updated the numbers of pre-foreclosure notices that our counseling network has received for a couple of months.

If the number of pre-foreclosure notices are a leading indicator of future foreclosures (which is a fairly safe assumption)... MN still has a LONG way to go before we reach the end of the foreclosure crisis.

As background for new readers, Minnesota State law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgager (homeowner) AND provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency - BEFORE filing the notice of pendency.

Once The Minnesota Home Ownership Center's network of foreclosure prevention agencies recieves notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.

Here are the January through September, 2009 STATEWIDE Pre-Foreclosure Numbers:

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Here are the January through September, 2009 Twin Cities Metro Pre-Foreclosure Numbers:

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We've added trend lines to both charts to help readers see where we seem to be heading.

Once again, we have to tip our hats to the statewide network of Foreclosure Counselors! 6,411 families received notification of their services in September alone!

This brings the annual total of pre-foreclosure notices received to:

• Twin Cities Metro: 31,487 (!)
• Minnesota Statewide: 49,985 (!!)

If you're falling behind with your mortgage payments... or think you may fall behind soon... don't delay, contact a Housing Counselor that specializes in foreclosure today! To contact your local Counselor, click here.

Statewide Pre-Foreclosure Notices June 2009

In response to yesterday's blog post (June 2009 Twin Cities Pre-Foreclosure Notices), we received a number of requests to see what the trend looks like for the entire state of Minnesota. Below are the TOTAL number of pre-foreclosure notices received by the statewide network of Foreclosure Counselors from January through June 2009.

So here are the numbers:

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While the trend is certainly moving higher, it is not nearly as pronounced as in the Metro. Here is the graph of the statewide numbers:

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We also received a few requests to see county-by-county trends... given capacity levels at our partner organizations and here at the Center... that won't be possible (for now).

June 2009 Twin Cities Pre-Foreclosure Notices

Minnesota State law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgager (homeowner) AND provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency - BEFORE filing the notice of pendency.

Once The Minnesota Home Ownership Center's network of foreclosure prevention agencies recieves notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.

Here are the June, 2009 Pre-Foreclosure Numbers:

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While the June numbers are a slight dip from May, it's far too early to say if this is a trend, especially given the 'staircase' effect we've seen so far this year:

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Once again, we have to tip our hats to the statewide network of Foreclosure Counselors! 4,150 families received notification of their services in May!

This brings the total number pre-foreclosure notices received in the Twin Cities Metro area (7-County Metro) to 21,030!

If you're falling behind with your mortgage payments... or think you may fall behind soon... don't delay, contact a Housing Counselor that specializes in foreclosure today! To contact your local Counselor, click here.

Mid Year Foreclosure Counseling Numbers

In 2008, the Minnesota Home Ownership Center's network of foreclosure prevention specialists assisted a record number of struggling Minnesota Homeowners. As reported previously, the network assisted over 11,000 families.

HOWEVER, In 2009, if current numbers hold through the end of the year, the network should assist over 15,000 homeowners - - A STAGGERING 27% increase over 2008!

Through May 31, 2009, specialists had counseled 7,537 families!

Even with the increased difficulties facing homeowners due to the current economic climate, and the increased number of homeowners seeking assistance, the network of specialists are still doing AMAZING things for their clients. Of the cases that have been 'resolved' (how our data tracking software labels homeowners where the outcome of their situation is known or consumer has decided to no longer work with the counselor)... the results are nothing short of spectacular:

Percent of resolved cases where foreclosure was averted: 63.66%

Percent of resolved cases where foreclosure was not averted: 22.50%

Percent of resolved cases where outcome is unknown: 13.84%

Of those cases where foreclosure was averted... How was the homeowner able to avoid foreclosure? Through May 31:

By bringing payments current .......... 40%
By modifying the loan .......... 25%
By obtaining a Forbearance Agreement .......... 17%
By Short sale .......... 6%
By filing Bankruptcy.......... 3%
By other means .......... 8%

There are a few caveats with the number presented here... while the actual number of clients counseled year-to-date is a definitive number (7,537) the number of resolved cases will change over time, which will affect (probably downward) the percentage of foreclosures averted.

All data in this post should be considered 'draft information' until our year-end report that should be available in the first quarter of 2010.

Congratulations to our statewide network of counselors. They continue to work incredibly hard on behalf of Minnesota homeowners!

Twin Cities Pre-Foreclosure Notices

Minnesota State law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgager (homeowner) AND provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency - BEFORE filing the notice of pendency.

Once The Minnesota Home Ownership Center's network of foreclosure prevention agencies, recieves notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.

The Center has decided to publish here on the blog the 7-County metro area numbers of pre-foreclosure notices that the network agencies have received. This will allow everyone to see upcoming trends in foreclosure numbers - as well as highlight the outstanding job that our network partners do to reach as many homeowners as possible.

The latest numbers do not show a slowdown in the number of pre-foreclosure notifications - and actually show that the trend-line continues to increase:

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Now, through the efforts of our counselors, lenders, servicers and the homeowners themselves, not all of the homeowners that receive a pre-foreclosure notice will necessarily be foreclosed upon - - but the numbers show that Minnesota is still far from seeing the end of its foreclosure crisis.

MPR: Foreclosures Fall First Quarter 2009

Yesterday on MPR Annie Baxter highlighted the HousingLink data that shows that foreclosures have dropped slightly in the first quarter of 2009 in Minnesota. You can read the article here.

Center staff were quoted once again in this article.

We've received a number of emails from our readers... apparently too shy to reply in the comments... about where they see foreclosures heading in Minnesota. (See the question we posed in yesterdays post: Star Tribune: Foreclosure Trend Question).

Most agree that we'll see similar numbers to 2008 - - but that the DISTRIBUTION of the foreclosures will be different. Most feel we'll see more suburban and greater Minnesota foreclosures as the economy impacts those areas more heavily. What say you? Feel free to respond in the comments.