Minneapolis area ranks high in foreclosures with positive equity

There are a variety of reasons why residents of Minneapolis might find that they are struggling to make ends meet. Depending on each person’s situation it may be impossible for those individuals to figure out a way to deal with the matter without help. These people may not know where to turn and those who own homes may end up letting them fall into foreclosure. This is particularly common when someone owes more on a house that it is worth. When the economy caused the value of homes to fall many people turned to this option.

According to a recent study conducted by mortgage research firm RealtyTrac, in communities throughout the nation, homes with positive equity are in the foreclosure process. The number of these properties has steadily been increasing over the course of the last three quarters and at the end of March 2014, homes in this situation account for 35 percent of the current foreclosures. Minneapolis is in a tie for second when it comes to metro markets with the highest rate of positive equity foreclosures, at 58 percent.

It is possible that in certain situations the owners of these homes might be able to find a way to keep their house. This might be accomplished via refinancing the home loan. In other situations the owner may be able to sell the home. Either of these options could preserve the homeowner’s credit.

There are likely multiple reasons few homeowners are taking advantage of this. Most likely they are not aware that the value of the home has risen during the sometimes long foreclosure process. In many cases owners of the property in foreclosure may have moved from the house and are no longer keeping tabs on its value.

While letting a home go into foreclosure may be the best course of action for a home owner, it may not be the only option. To determine what is possible in your specific situation it is a good idea to consult with an attorney.

Source: The Washington Post, “More homeowners no longer need to be in foreclosure, and they may not even know it,” Dina Elboghdady, April 18, 2014

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