HousingLink released its first quarter report for 2010 on Minnesota foreclosures, and it is not good news. Minnesota reached its second-highest level during the current housing crisis with a total of 6,879 foreclosures. What makes this today different than the foreclosures we saw a couple years ago — foreclosures due to predatory lending practices? Today, unemployment and falling home values are forcing more middle-income homeowners into foreclosure. Check out an article in today’s Star-Tribune Business Section,Minnesota sees more foreclosures coming, for local reaction to the report.
In related news, and also in today’s Star-Tribune, check out the article Minneapolis keeping an eye on foreclosures. The city is seeing an increased number of formerly-foreclosed properties turn into rental units. The problem, according to the article:
problem investors are still out there, the report’s authors said, citing buyers who make only minimal repairs before flipping houses, those who buy with little investment and either rent the property or hold it vacant until the market improves, and some who try fraudulent rent-to-own schemes.
