No one wants to lose their home.
When faced with foreclosure, it is normal for any homeowner to panic. No one wants to lose their home and the hopes and dreams often attached to the home. However, instead of being paralyzed with worry, homeowners are encouraged to seek out options as soon they are facing the possibility of foreclosure.
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.
Minneapolis and St. Paul residents who are living in fear of losing their homes to foreclosure know firsthand just how stressful it is to be in debt. However, the situation can become even more stressful when lenders fail to respond to homeowners about possible loan modifications in a timely matter. In fact, this time delay can even lead some further into debt and eventual foreclosure.
A slight increase in Minnesota's unemployment rate in August triggered worries among many Minnesotans that the state may be losing traction in its economic recovery. The state had been making great strides to crawl out of the Great Recession.
For many people caught in the downed economy, saving their home is a top priority. This often means looking for ways to trim the budget in order to make the monthly mortgage payment.
The record $25 billion settlement approved in April between mortgage lenders and attorneys general from 49 states brought hope to many people with non-federal backed mortgages. Unfortunately, it also left many middle to low income people still tied to Fannie Mae and Freddie Mae in the lurch. What may be even more troubling, many mortgage lenders are speedily resuming the foreclosure process.
Homeowners in the Twin Cities have been encouraged by signs of economic improvement in the past few months. Home prices began to rise again after a two year slump. Behind that sunny forecast however, there are signs of another tempest brewing.