Minnesota Foreclosures Present Real Estate Buying Opportunities

Minnesota foreclosures decreasing 12 percent in 2009 are giving real estate experts reasons to believe that the real estate market is improving. In 2009 Minnesota had 23,019 foreclosures, representing 1.28 percent of all residential property. Close to 5 percent of Minnesota’s residential properties have been foreclosed since 2005. The highest rate was in Isanti county with 388 foreclosures or 2.86 percent. Sherburne, Mille Lacs, Wright, Kanabec and Chisago counties had foreclosure rates in excess of 2 percent. Despite these gloomy statistics there is cause for optimism.

The federal mortgage modification program and the federal government’s purchase of mortgage-backed securities are the primary cause in the decrease in the foreclosure rate. Mortgage payments can be reduced up to 30 percent of a homeowner’s income under the mortgage modification program. The mortgage modification program is scheduled to end in 2010. Without the cushion of this program, foreclosure rates could increase again.

Economists believe that the only solution to the foreclosure crises in Minnesota is improvement in the job market. The unemployment rate would have to fall 2 percent before the trend would begin reverse significantly. Outlying counties, which do not have a lot of manufacturing jobs to lose, actually had an increase in foreclosures in 2009 as the tourist industry declined.

The $8,000 tax credit for first time home buyers have helped keep foreclosures down in 2009. The credit made it easier for homeowners who were behind in their mortgage payments to sell their homes before foreclosure. This credit is due to expire in April 2010. Extending it further would increase liquidity in the housing market, thus, holding down foreclosure rates.

There is hope that the jobs bill currently in congress may stimulate the economy and revive home sales. Many economist believe the stimulus package passed in 2009 was too small. Perhaps increase federal spending on public works, and investment in infrastructure would create enough jobs to kick start the economy and stop the trend in foreclosures.

It appears the recession is ending. We have had a slight increase in GNP in the first quarter of 2010. The unemployment rate has peaked and is now slowly heading down. If the right incentives, tax policies, job creation measures are past we will experience a more rapid economic recovery. The basic structure of the American economy is healthy. The right stimulus and money policies combined with deficit reduction measure will restore confidence and integrity to the economy.

The cycle of investment and social utility are inevitable. Low real estate prices attracts risk takers. As the properties are improved, credit markets stabilize, and consumer confidence grows prices will begin to increase. The real estate market will be revitalized

We are now entering the final stage of the real estate liquidity cycle where we will begin reduce the numbers of Minnesota foreclosures. As we pass this election cycle, things will become calmer politically. The environment will exist for stimulus and jobs legislation to ignite the economy. These are all reason to be hopeful about our future.

When you want information that regards foreclosure in Minnesota, try using the net as your search. Tons of mn foreclosures can be helped if you find the right information. So, don’t let you get a mn foreclosure happen to you without getting help.