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.

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.     

Safe at Home: Preventing Foreclosure

The Minnesota Home Ownership Center, in partnership with Twin Cities Public Television (TPT) and PRG, Inc. has produced a documentary entitled: "Safe at Home: Preventing Foreclosure"

Safe at Home: Preveventing Foreclosure, gives an overview of the Foreclosure Prevention efforts of the Statewide Counseling Network of foreclosure prevention specialists. It explains the current mortgage crisis in Minnesota and, more importantly, explains the efforts that are underway to assist consumers and rebuild neighborhoods.

The program comes to life with the contributions of two brave home owners who were willing to share their personal stories so that Minnesotans watching could learn about the real warning signs of falling behind – and the benefits of counseling.

The documentary begins airing on Sunday, May 17th at 7:00pm on the Minnesota Channel.

For additional information, click here.

Julie Gugin, Center's Executive Director, on TV

Julie Gugin, Executive Director of the Minnesota Home Ownership Center, was invited to join Minneapolis Mayor R.T. Rybak on the "Meet the Mayor" TV program.
It broadcast for the first time today, Wednesday April 29th, at 11:00am on Minneapolis Cable Channel 14 and will rebroadcast for the next several weeks on Tuesdays and Saturdays at 8:00pm; and on Sundays and Wednesdays at 11:00am.

For those who live outside of the City of Minneapolis, the show is also available online:
http://shows.implex.tv/Qwikcast/Root/minneapolis/2056/preflight.htm?AutoLoginComplete=1

Taped on location in Minneapolis' Willard Hay neighborhood, Mayor Rybak discusses Minneapolis initiatives to prevent foreclosures, reinvestment in neighborhoods and other foreclosure- and recovery-related issues with Julie Gugin & Tom Streitz, City of Minneapolis Housing Policy and Development Director, among others.