Foreclosure rates in Minn. 'still a crisis' for thousands - Bring Me The News

Foreclosure rates in Minn. 'still a crisis' for thousands

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Despite the housing recovery, thousands of Minnesotans are still threatened with losing their home to foreclosure. The Star Tribune reports that some 10,000 Minnesota homeowners got preforeclosure notices in the first quarter of 2013. The Minnesota Homeownership Center said that is a 34 percent hike over the previous quarter.

“It’s still a crisis,” said Sandi Kleist, financial counselor for Lutheran Social Service in Brainerd.

Home prices in the Twin Cities and beyond have risen at double-digit rates. But those gains haven’t been enough to lift thousands of Minnesota homeowners out of negative equity. According to CoreLogic, nearly one in five Twin Cities homeowners — or nearly 100,000 households — owed more than their house was worth in March.

Unemployment remains the primary culprit. Many of those who have been rehired after losing their jobs during the recession don't make enough at their new jobs to recover from the financial deficiencies that they experienced while jobless.

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