The results of a new study by a consortium of Minnesota housing agencies found that foreclosures in the state dropped by about 17% in 2011. The study found approximately 21,300 Minnesota foreclosures in 2011. That is about 25,000 fewer than the number of Minnesota foreclosures filed in 2010.
While 21,300 foreclosures is the lowest number seen in the state since 2007, the news is not all positive. News reports indicate that 21,300 foreclosures are still triple the number expected in a typical year in this state. Additionally, a spokesperson for the Minnesota Homeownership Center believes that it will take many years for the rate to go back to what is considered a typical level. It is expected that the move back toward typical foreclosure levels will be gradual over a period of years rather than a sudden drop in one year.
Furthermore, the 17% reduction in 2011 foreclosures was not uniform throughout the state of Minnesota. Some counties are still struggling with home foreclosures more than others. Specifically, Olmsted, Minnesota and Dakota Counties had more foreclosures in 2011 than they did in 2010.
Despite the lower number of foreclosures statewide, foreclosed homes continued to make up a large percentage of homes on the real estate market, which may have an effect on home values in the short term.
Our Minnesota bankruptcy lawyers hope the economic tide turns quickly and fewer Minnesotans face foreclosure in 2012 and in the coming years.