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.   

Preforeclosure Notices Continue to Plummet in Minnesota

The Minnesota Homeownership Center has compiled the most recent quarterly data on Preforeclosure notices and the report shows that the number of notices issued by banks and servicers continues to plummet across the state.  The data is another encouraging sign that the Minnesota housing market is slowly recovering from the foreclosure crisis.


In the second quarter of 2013, Minnesota homeowners received only 6,598 preforeclosure notices, a healthy 34% drop from the almost 10,000 notices received in the same quarter of 2012:

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The decline is even more dramatic in the Twin Cities metro area, where the 3,339 3,714 notices received* by homeowners represent a drop of almost half from the same period last year:    

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”We see signs of the overall economy improving as well as a willingness on the part of lenders and servicers to work with struggling homeowners before they enter the foreclosure process,” Said Ed Nelson, Marketing and Communications Manager for the Center  “If the economy continues to gain traction, combined the extraordinary efforts of the statewide network of foreclosure prevention counselors, we should continue see even fewer foreclosures in the future.”

The positive trend for Minnesota cannot be denied... but we also know that these numbers mean that almost SIXTEEN THOUSAND families were struggling to make mortgage payments - and fell behind - during the first half of 2013.   The Minnesota Homeownership Center and the Homeownership Advisors Network will continue to offer FREE foreclosure avoidance services to anyone who is struggling with their mortgage payments.

If you, or someone you know, is struggling with to keep up with their mortgage payments, or is worried about a FUTURE payment... don't delay, contact a Homeownership Advisor that specializes in foreclosure today!  To learn more, or to contact your local organization, click here.


*DATA UPDATED - The author incorrectly tallied the data for the Twin Cities metro area.

Uptick in Preforeclosure Notices: Blip or Trend?

A mixed-bag for foreclosures in Minnesota


On Wednesday, May 1st, the Minnesota Homeownership Center released its first quarter data on the aggregate number of Preforeclosure Notices received by foreclosure prevention specialists in the Homeownership Advisors Network.  The numbers send some mixed messages.  Overall… it’s something that we’ll need to track carefully over the coming quarters.  

In the first quarter of 2013, members of the Homeownership Advisors Network received 9,291 preforeclosure notices, 23% fewer than during the same time period in 2012, but a somewhat troubling 34% increase from the number received in the Fourth Quarter of 2012.  

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The Twin Cities Metro area also saw a similar situation with their preforeclosure notice numbers… down Year-Over-Year (-34.5%) while up from the fourth quarter of 2012 to the first quarter of 2013 (+25.1%).

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Interestingly… there was a WIDE variance in the year-over-year comparison of preforeclosure notices received by homeowners in the Twin Cities Metro:

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Suburban Hennepin County homeowners received less than HALF the number of preforeclosure notices in the first quarter of 2013 than they received in the first quarter of 2012.  However, 20% MORE Ramsey County residents received a preforeclosure notice when we compare the same time period.

While most Metro counties overall saw generous declines in the number of struggling homeowners… Anoka County bucked that trend and 44 more households received a notice in the first quarter of 2013 than in the same quarter in 2012.  (A 4% increase).

One quarter of data does NOT make a trend.  We’ll keep monitoring these numbers carefully over the coming quarters to see if a trend develops.

We certainly don’t want to sound like a broken record… but it’s also important to keep in mind that while the overall trend of preforeclosure notices continues to head in the right direction… the numbers signify that almost 10,000 Minnesota families continue to fall behind in mortgage payments.  Tens of thousands more are surely struggling to make mortgage payments and will continue to need the foreclosure prevention services provided by the Minnesota Homeownership Center and the Homeownership Advisors Network.

If you, or someone you know, is struggling with to keep up with their mortgage payments, or is worried about a FUTURE payment... don't delay, contact a Homeownership Advisor that specializes in foreclosure today!  To learn more, or to contact your local organization, click here.

Independent Foreclosure Review Payments to Begin Shortly

Consumers are warned to be careful!

At the end of March, Rust Consulting, the private contractor hired by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to oversee applications and payments for the Independent Foreclosure Review began mailing postcards to 4.2 million homeowners.  These postcards officially notify these consumers that they will be receiving IFR settlement payments.   The payments themselves will be mailed in the next four to eight weeks.

For more information about IFR, view some of our previous blog posts, here and here.

DON’T BECOME A VICTIM OF A SCAM.

Scam artists are ALWAYS looking to prey on consumers.  If you receive a postcard, make sure that the information is coming from Rust Consulting, that the phone number on the card is 1-888-952-9105, and that the website to visit is one of the following: 

• The Office of the Comptroller of the Currency (OCC: http://www.occ.gov/independentforeclosurereview), 
• The Federal Reserve Board (http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm), or
• The Independent Foreclosure Review (http://independentforeclosurereview.com/).
  
  Any other solicitation may be a scam!

DO NOT PAY TO GET HELP:

• No one has to pay a fee to receive payment through the IFR.
• No one can ‘help you get more money’ as the amount of the payment has been decided by federal regulators.  The amount cannot be negotiated.
• The opportunity to request an independent foreclosure review is OVER.  If you were not on the regulators and the servicers lists – the deadline to apply was December 31, 2012 – paying someone will NOT get you added to the list.

For additional information, visit the Frequently Asked Questions page on the independent foreclosure review website, here.

NOTE:
The most recent postcards ONLY cover settlements with 27 major servicers.  (Click here for a complete list).  There are still 3 major servicers that have not settled:

• Ally (GMAC Mortgage), 
• Everbank, and 
• OneWest Bank (IndyMac).

If you have questions regarding the Independent Foreclosure Review or any mailing you receive about IFR, please contact a Homeownership Advisor in your area.  

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 today!  Waiting limits your options!

Foreclosure Counseling Has Saved Minnesota Billions of Dollars

26,000 homeowners avoid foreclosure thanks to Homeownership Advisors Network since 2008

The Minnesota Homeownership Center has released its Foreclosure Counseling report for 2012.  

This report provides a summary of demographic and outcome data from the foreclosure prevention counseling program provided by the Center's Homeownership Advisors Network.

Almost 6,000 Minnesota households availed themselves of free foreclosure prevention services last year, bringing the total to almost 70,000 households since the crisis began.  

Most importantly, more than 26,000 households successfully avoided foreclosure on their home since 2008.

According to the Joint Economic Committee of the U.S. Congress, the average cost of a single foreclosure is $78,000:

• $50,000 – Lenders (recent Standard & Poor’s study breaks this down)
• $19,227 - Local government – shrinking tax base, property maintenance, utility cancellations, policing.
• $1,508 - Neighbors – (decrease in home value, home is harder to sell or refinance.)
• $7,200 - Homeowner – (loss of equity, moving expenses, legal fees, etc.)

This means that, thanks to the extraordinary efforts of the Center’s Homeownership Advisors network… foreclosure counseling has saved Minnesota (lenders, municipalities and communities) over $2 Billion. 

Even more extraordinary is the fact that, according to our most recent cost survey, conducted by the Federal Reserve Bank of Minneapolis, foreclosure counseling costs, on average, just $400 per household.

To view the full report, visit the Center's website, here:

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.

Foreclosure Prevention Counseling in Minnesota

The Minnesota Homeownership Center has released its Foreclosure Counseling report for 2012.  

This report provides a summary of findings from an evaluation of the foreclosure prevention counseling program provided by the Center's Homeownership Advisors Network. 

In Minnesota, local, free foreclosure counseling services are provided to ANY homeowner through a network of about 25 different non-profits, governmental, tribal and social service agencies throughout the state.

The report summarizes household and loan characteristics, service usage, and outcomes for homeowners receiving foreclosure counseling during the past twelve months. 

The complete report is available online at the Center's website, here.


Here are a few highlights from the report:

5,947 households received foreclosure counseling services in 2012, 

a decrease of 41% from 2011.  

47% of households receiving counseling services in 2012 

were able to avoid foreclosure.  

3 out of 5 households had mortgage payments that 

were more than 30% of their income 

(the traditional benchmark of mortgage affordability).

More than half of households served fell behind in their mortgage 

due to a loss or reduction in income.

If you, or someone you know, is struggling with to keep up with their mortgage payments, or is worried about a FUTURE payment... don't delay, contact a Homeownership Advisor that specializes in foreclosure today!  To learn more, or to contact your local organization, click here.

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.     

Dramatic Drop in Preforeclosure Notices

Another good sign for Minnesota's Housing Market


On Tuesday, January 22nd, the Minnesota Homeownership Center released its year-end data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network.  The numbers continue to show almost universal good news about the future of foreclosures in Minnesota.  

In the fourth quarter of 2012, members of the Homeownership Advisors Network received only 6,937 preforeclosure notices, 45% fewer than during the same time period in 2011, reaching the lowest level reported since the state legislature required the notices in late 2008:

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In total, Minnesota households received 28% fewer preforeclosure notices in 2012 than they did in 2011.  In addition, the preforeclosure notices are down just as dramatically in the Twin Cities Metro as well:

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The City of St. Paul seems to be the ONLY location where notices have not dramatically decreased.  We'll keep our eye on these numbers to see if the quarter four data is an anomaly or a sign of a deeper issue. 

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While it is encouraging that the numbers of preforeclosure notices received is down to the the lowest level since we started tracking these numbers, we can't lose sight of the fact that almost 40,000 Minnesota households continued to struggle with their mortgage payments in 2012.

If you're struggling with mortgage payments... you're not alone.  Thousands of others are also struggling.  More importantly, Minnesota has a statewide network of non-profit organizations that can help YOU put a plan in place to avoid foreclosure.  Last year, more than half of the people who sought out our services were able to avoid foreclosure.  Don't delay, contact us today. 

Mortgage Debt Relief Act – Extended One More Year

Ordinarily any housing debt forgiven by a lender or servicer (short sale, principal reduction, short refinances, deed-in-lieu of foreclosure, etc.) is considered taxable income by the I.R.S. and must be included (added) to a taxpayer’s gross income when calculating their income tax.

In 2007, the Mortgage Forgiveness Debt Relief Act allowed homeowners who received debt forgiveness to not have to pay taxes on the amount forgiven in most circumstances.  The law was then extended in 2009 for an additional three years (through 12/2012).

The ‘fiscal cliff’ deal that was recently signed by President Obama extends the exception for home mortgage debt forgiveness for an additional year covering debts discharged through the end of 2013. 

Minnesota homeowners need to know that there are MANY stipulations in the legislation.  Most importantly, for homeowners to qualify for debt forgiveness, their debt must have been used to “buy, build, or substantially improve” their primary residence.  This stipulation is especially important for buyers whose debt has been forgiven on a refinanced or second mortgage.

You can view a copy of our newly-updated fact sheet here.

Consult a qualified tax professional if you have additional questions about the Mortgage Forgiveness Debt Relief Act or the most recent extension.

Dozens of other helpful facts sheets about foreclosure and foreclosure prevention are available to the public and can be freely downloaded from the Center's website, here.

If you're struggling with mortgage payments... you're not alone.  Thousands of others are also struggling.  More importantly, Minnesota has a statewide network of non-profit organizations that can help YOU put a plan in place to avoid foreclosure.  Last year, more than half of the people who sought out our services were able to avoid foreclosure.  Don't delay, contact us today.

Housing Holding Pattern: Preforeclosure Notices

A Good News / Bad News situation

On Monday, October 29th, the Minnesota Homeownership Center released its data on the aggregate number of Preforeclosure Notices received by counselors in the Homeownership Advisors Network for the third quarter of 2012.  

10,016 households were notified by their lender/servicer between June and September that they may find themselves in foreclosure if they aren't able to bring their mortgage payments current.

This number sends a mixed message that can be cause for celebration or concern, depending on your disposition:
  
The Good News -  Year over year, the numbers continue to show improvement for the number of households that are struggling with foreclosure as the number reflects a decline of 31% from the number received in the same period in 2011.  (14,586 vs. 10,016)

The Not-So-Good News -  We saw no improvement when we compare the number received in the third quarter with the number received in the second quarter.  When comparing the two quarters, we actually see a very minor 0.21% increase.

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The Twin Cities Metro area experienced a slightly larger increase in the number of notices from Q2 – Q3 (a 2% increase) and while it shows a substantial decline from the same time period in 2011 (-27%) the decline doesn't match the overall statewide decline (-31%, mentioned above).

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Overall today’s numbers show that while the foreclosure crisis is slowly coming to an end…we are, by no means, out of the woods yet.

In addition, we shouldn't lose sight of the fact that the numbers show that more than THIRTY THOUSAND Minnesota families continue to struggle with mortgage payments. You can help these families by connecting them with information, resources and effective foreclosure prevention help.  

Join us in spreading the word by placing banners on your blog/website… or asking your employer, social service agency or local government to post links to the Minnesota Homeownership Center’s website:

For electronic copies of banners you can use, visit: http://hocmn.org/en/bannerpage.cfm.

If you're struggling with mortgage payments... it's as you can see from this blog post.... you're not alone.  Thousands of others are also struggling.  More importantly, Minnesota has a statewide network of non-profit organizations that can help YOU put a plan in place to avoid foreclosure.  Last year, more than half of the people who sought out our services were able to avoid foreclosure.  Don't delay, contact us today.

Midyear Sheriffs Sales Report Released

MIXED MESSAGE FOR HOUSING: YEAR OVER YEAR DOWN 15% BUT VIRTUALLY UNCHANGED FOR THE LAST 3 QUARTERS, RATES STILL EXCEED HISTORIC LEVELS

The Center has released its most recent report on the number of homes sold at Sheriffs’ sales in Minnesota during the first half of 2012... and it sends a mixed message on the overall health of Minnesota’s housing market.   The report indicates that there were 9,565 foreclosures in the first half of 2012, a decline 15% from the same time period in 2011, but also shows that foreclosures have remained virtually unchanged for the last three quarters. 

The report, titled “2012 Semi-Annual Foreclosures in Minnesota:  A Report Based on County Sheriff’s Sale Data”, analyzes sheriff’s sale data, the only accurate means of identifying completed foreclosures, from each of Minnesota’s 87 Counties.  Minnesota is unique among other states in the availability of current, comprehensive foreclosure sale data. 

 “This report does not predict the future, but it sends a discouraging message,” said Julie Gugin, Executive Director of the Minnesota Homeownership Center.  “While the year-over-year declines are positive, we also know that thousands of Minnesota families continue to struggle with payments, and those numbers remain stubbornly high.”  

The Minnesota Homeownership Center, Greater Minnesota Housing Fund, Minnesota Housing and Family Housing Fund published the report, with research provided by HousingLink.

A full copy of the report is available at the MN Homeownership Center’s website: here.

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.

New Online Ad Campaign for Foreclosure Prevention

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The Minnesota Homeownership Center has launched a new online advertising campaign to reach struggling homeowners and get them connected to the Homeownership Advisors Network where they can get the foreclosure prevention services they need.

 

OUR STRATEGY:   This week, the Center  will begin an integrated digital (online) advertising program to reach struggling Minnesota homeowners through: 

• Search Engine Marketing (SEM) (Highlighted ads that appear on Google, Bing, Yahoo! and other search engines when consumers search for specific topics). 
• Online banner advertising through the Yahoo! Advertising and the AdTaxi networks.  

Online banner and SEM advertising allows us to limit production expenses and get the ad seen by as many targeted households as possible.  When all is said and done, the ads will have been posted over 4 MILLION times.

 

OUR TARGET:   Online data and web usage tracking allow us to target struggling homeowners that meet specific demographic profiles.  We’ll be focusing on these homeowners in:   

• the 7-County Metro area (Hennepin, Ramsey, Carver, Scott, Dakota, Washington Anoka)
• Isanti, Pine, Sherburne, Chisago, Mille Lacs and Kanabec Counties;
• The cities of St. Cloud, Duluth, Rochester, Mankato and their surrounding communities. 

By targeting these areas we are reaching the hardest-hit areas of the state as well as close to 75% of the statewide population.

 

OUR TIMELINE:   The banner and SEM ads will begin the week of July 9th and are scheduled to run through early 2013.   

 

WE'RE BEING PROACTIVE:  The Center feels strongly that we can't wait for homeowners in trouble to come to us.  We have to proactively reach out to them to let them know help is available.  That's what this campaign is all about.  It's a no-nonsense message -- we're an effective, free, non-profit way for any Minnesotan to access foreclosure prevention services.

 

WE'RE BEING EFFICIENT:  We chose an online campaign to reach people in the most efficient way possible, and to ensure we could have the conversation with homeowners at a time when they are just one click away from getting help.  

 

WE'RE FOCUSED ON OUTCOMES:  We didn't want a feel-good campaign.  We want MN homeowners to get help, and we'll be monitoring the campaign's web analytics in real time to see how we're doing.  If search terminology or ad placement isn’t working, we'll adjust.  We are hopeful this approach will prove to be both an efficient and effective way to connect homeowners to foreclosure prevention services, and we'll be carefully measuring against that outcome.

 

PREVIEW THE ADS.  Unless you fit the targeted demographic and geographic profile we’ve identified, you may not see our ads much, or even at all.  We have, however, uploaded preview versions of the ads to our website here: http://hocmn.org/en/bannerpage.cfm

 

YOU CAN HELP!  

We can send you these ads electronically so you can email them to others, put one on your website or ask that your municipality, local social service organization or other partners post it.  The more broadly the ad is seen, the more likely homeowners will get the help they need!

Foreclosure Review Deadline Extension and Details Released

The Office of the Comptroller of the Currency (OCC), one of the Federal regulators that took enforcement action against large residential mortgage servicers for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing, announced today that they have extended the deadline for borrowers to request an Independent Foreclosure Review (IFR) until September 30^th, 2012.

This announcement is so new that as of today, even the official IFR website still states that the deadline is July 31^st.

More importantly, the OCC and the Fed have released a “Financial Remediation Framework” document which outlines the possible remedies borrowers can expect to receive - and the financial compensation they may be eligible for - as a result of the IFR process.

For months, consumers and their advocates have asked us - why bother??  And now the answer is clear... the financial 'remedy' consumers may receive if the independent review finds that their lender committed an error in their foreclosure process can be SUBSTANTIAL - - Up to $125,000 plus equity losses!

For additional information about IFR... view our past blog posts here and here.

If you were in the foreclosure process in 2009 or 2010... don't let this opportunity slip by.  Contact us today to learn more.

Preforeclosure Notices Continue Downward Trend

Special thanks to Aaron Dickinson for reminding us that we hadn’t released our first quarter pre-foreclosure data.  THANKS AARON!

On  Thursday, June 7th, 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 first quarter of 2012 (January through March).  The numbers, while increasing slightly from Q4 2011, show that the number of struggling households in Minnesota continues its downward trend. 

In the first quarter of 2012, members of the Homeownership Advisors Network received 12,106 preforeclosure notices, up very slightly (.75%) from Q4 2011, but 17% fewer than during the same time period in 2011:

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Encouragingly, the number of pre-foreclosure notices is down in every area of the state… except for two areas that seem to have bucked the downward trend.  We’ll continue to monitor these two areas to see if this is a trend… or just an anomaly:

• Scott & Carver Counties reported an increase of 7% (From 558 to 599 notifications); and
• Wilkin & Clay Counties reported a 40% increase – although small numeric changes in this area can show large variations in the percentage (40 households received a notice in Q1 2011, while 56 households received a notification in Q1 2012). 

While these numbers are encouraging, there were still over 12,000 households that received a preforeclosure notice in the first quarter of 2011:

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Here's the breakdown for the number of preforeclosure notices received by members of the Homeownership Advisors Network in the 7-county metro area:

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As background, Minnesota state law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgagor (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 Homeownership Center's network of foreclosure counselors receives 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.


Most importantly, if you or someone you know is struggling with their mortgage payment, new programs, resources and assistance are becoming available all the time. Don’t give up… contact a foreclosure counselor that is a member of the Homeownership Advisors Network today to see if there’s help available for you to avoid foreclosure. Even if you’re not yet behind, now is the time to call. To find your local foreclosure counselor, click here.