Minn. in 27th place on list of states with most foreclosures
A survey by foreclosure research firm RealtyTrac found that, nationally, one in every 171 households received at least one foreclosure-related notice between April and June.
The same survey found one in every 403 Minnesota households was in some stage of foreclosure, making the state 27th on the list of states with the most foreclosures.
The University of Minnesota's Prentiss Cox said the survey overstates the number of foreclosures. He said a more accurate picture comes from looking at the number of bank sales of foreclosed homes.
Cox said the wave of foreclosures resulting from the subprime lending crisis is now working its way through the system and will begin leveling off.
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But he said if the economy continues to worsen, we could see even more foreclosures down the road.
"It's also possible and equally likely that we will see a stabilizing of all of these factors and we'll see a gradual drop in forclosures but it's very precarious," Cox said.
Cox is calling on the governor and the state legislature to take action to help more homeowners at risk of foreclosure hold on to their homes.
Congress Saturday passed legislation that would help and estimated 400,000 homeowners escape foreclosure, by allowing them to refinance their mortgages.
The $3.9 billion bill would also help neighborhoods devastated by the housing crisis buy and fix up foreclosed properties.