Discover: The Truth Behind Minnesota Foreclosures

In 2009, Minnesota foreclosures were above what was considered normal

. However, there were some slight changes toward recovery within the year. The market however continues in a downturn for the worse. Average prices of homes went in the direction of negativity, since home sold averaged about 15 % less than the year before.

The first time home buyer program has been attributed as the reason for the 17% increase in home sales last year. Since 2005, the amount of sales that took place last year amounted to the most in seen since that time. Largely, this has to do with the number of short sales and foreclosures that came at higher numbers as well. Short sales relate to those who sell their homes for a price that is less than the home is worth.

Many American homeowners currently owe more on the home they own than what the house is actually worth. When people are in this type of situation they are less likely to try and move to a home that is bigger, since they do not want to pay the difference they would have the responsibility of. Among the 21% of American's within this situation, federal programs have offered to put those individuals into larger homes through subsidies. This has to do with wanting to encourage the amount of sales which take place. In April, this program extended to these types of homeowners as well as those who are first time buyers will end.

Regardless of any programs that are put in place, nothing will work well within the market until the job market levels off. Despite the 12% drop to 23,019 Minnesota foreclosures in 2009, there is still good reason to worry. The number of foreclosures continues to remain higher than normal, since 1.28 percent of foreclosures were residential properties. This number is three times the normal rate. This has been ongoing trend since 2005 when the Minnesota real estate market started to go into disarray.

No matter what, people need jobs that are steady. Additionally, people need jobs with wages that go along with the economies stability. As this starts to happen things should start to become more stable for all.

In 2009, some may think the decrease in foreclosures related to something good, but numbers indicate otherwise. Mostly all of those who were able to keep their homes, did so through the government programs that came into play. This allowed some who have homes with a price tag amounting to thirty percent of their income to keep their home, but still leaving them within a red zone.

Importantly, one thing for all to notice remains the real reason behind the drop in foreclosures in 2009, which had nothing to do with a drop in the economy. The only reason there was any kind of drop in the unemployment rates had to do with the federal programs put in place. Many of the programs such as the one Minnesota's non profit organizations helped individuals to keep homes from defaulting. Most of the homes were 30% of the homeowners income. Therefore, they were worked with in order to help alter the mortgages in which had at that time.

Starting in 2010, job in Minnesota are expected to increase. Despite this, Minnesota foreclosures are expected to continue at a high rate. This has to do with the expectation that the change which will occur will not be enough to make much of an impact.

by: Junior Higgins

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