Low foreclosure rate in Minnesota reflects national trend

With an inventory of foreclosure homes of only 0.4 percent among homes with mortgages, Minnesota places among the states with the lowest foreclosure rates as of July 2015. This matches a nationwide real estate recovery that has seen a 27.9 percent decrease in foreclosure inventory over the previous year, as reported by CoreLogic, a group that monitors the housing market.

The president and CEO of CoreLogic said that consumers are now acting upon their desire to buy homes after waiting through the economic downturn. Improvements in economic factors along with more strenuous underwriting standards by lenders have reduced the number of foreclosed homes in recent years.

Foreclosures peaked in September 2010 when 117,225 homes completed the foreclosure process in that month alone. People began losing their homes in record numbers when the financial crisis hit the country in 2008. Since that time, lenders have reclaimed 5.8 million homes throughout the country. Although the rate of delinquent mortgages is in decline, foreclosure troubles persist in five states that account for nearly half of the foreclosure inventory nationwide.

Even with foreclosures hitting an eight-year low, any individual could fall behind on mortgage payments for a number of reasons, including job loss and illness. A person at risk of losing a home has time during the foreclosure process to potentially retain possession of the property. A lawyer might be able to advise the person about strategies for halting a foreclosure or negotiating a new payment plan. After reviewing the person's finances, a lawyer could prepare legal actions that might relieve the financial pressure. Filing for bankruptcy might be a viable option for a person. Even if it only stops a foreclosure temporarily, a person might get a chance to catch up on payments.

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