Foreclosure rate declines in Minnesota, but some still struggle

The overall foreclosure rate in Minnesota has declined. This decline was also not just seen in some small pockets of the state, but was rather spread across all regions of Minnesota. However, while this is certainly good news, one does not want to take this as a false sense of security or start to think that no one is still struggling.

According to CoreLogic, the national foreclosure rate is 2.61 percent. However, in the Twin Cities, the foreclosure rate in May was below the national rate at 1.04 percent. This means the foreclosure rate for the Twin Cities metro area dropped by 0.80 percentage points in the past year.

It should be noted, the most up-to-date statistics mentioned in a recent Star Tribune article were the rates for May.

In addition to there being a decline in the foreclosure rate, there was also a decline in the number of delinquent loans. In this context, delinquency means the mortgage loans were at least 90 days past due, if not more.

However, someone reading of these declines should not automatically assume that all homeowners in Minnesota are just financially fine now. Rather, there are still plenty of people struggling to keep up with their mortgage payments. In some cases, while maybe a homeowner is not delinquent, this homeowner is just barely scraping by or is sacrificing one debt for another.

In general, facing foreclosure is one of the most stressful times in a person's life. Not only is the entire foreclosure process rather confusing, but the fears and emotions tied to possibly losing a home can be downright unbearable.

The last thing anyone wants to do is handle a foreclosure on their own. Rather, as soon as a homeowner realizes that foreclosure is a real possibility, this owner should reach out to an attorney with experience handling debt relief in the Twin Cities area. This attorney will be able to explain the entire process and what different options may be available.

Source: Minneapolis Star Tribune, "Twin Cities foreclosure rates eased during May," Jim Buchta, July 23, 2013

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