Last month, RealtyTrac warned Minnesotans that the foreclosure problem might not be over despite recent good news in the housing market. It is important for homeowners, particularly those having trouble paying their mortgages, to understand both the good news and the potential causes for concern.
First the Good News
The good news about the Minnesota housing market is that there were fewer foreclosures reported in the first quarter of 2012. Home sales in Minneapolis and St. Paul were up over 10% over the past few months. The median home prices in the area increased for the first time in almost two years. It is thought that the prices increased because of the decrease in foreclosures.
A Warning of More Foreclosures to Come
Despite the good news, there is cause for concern. For example, while fewer foreclosures were reported in the first three months of 2012, the number of people headed toward foreclosure increased by 11%. One of every 312 Minnesota homeowners received a notice that their house would be going to auction or received an auction warning. Real estate experts believe that the break in foreclosures was due to irregularities that temporarily halted the process and that another round of foreclosures will occur. It is unclear how many of the people who received notices will actually have their homes foreclosed or when those foreclosures will take place.
The Minnesota Home Ownership Center has told the Star Tribune that the foreclosures are moving from big cities to more rural areas but are not going away. Our Minneapolis foreclosure lawyers remind homeowners that you have options if you are facing foreclosure, and send our best wishes for a quick financial recovery.