How does foreclosure prevention fit into the toolbox for supporting housing choices?
Why should communities get involved in foreclosure prevention?
The number of mortgage foreclosures in Minnesota and throughout the country dramatically increased during the economic crisis beginning in 2006-07. Minnesota experienced about 6,500 foreclosures in 2005. In 2008, that number increased to nearly 27,000 foreclosures. The number of foreclosures decline to 11,834 in Minnesota in 2013. This marked the third consecutive year of double-digit percentage declines in foreclosure, with 2013 coming in at less than half the total number of statewide foreclosures than the last “high water mark” total in 2010. Perhaps even more notable: the number of foreclosures in 2013 is just below the total number in 2006, the year generally regarded as the first year of the foreclosure crisis as indicated in the 2013 Annual Foreclosure Report.
Even though we have seen great decline in foreclosure numbers, this situation still affects many home borrowers. Foreclosures affect more than just individual borrowers. Foreclosures continue to deplete existing resources and displaces thousands of families and children. The vacant and boarded structures left behind, devastate neighborhoods and surrounding property values and frustrate community reinvestment and recovery. Government efforts can help both individual borrowers and the community overall by:
- helping people stay in their homes and retain their equity,
- preventing widespread losses in low- and moderate-income homeownership,
- stabilizing communities,
- safeguarding local property tax rolls, and
- protecting nearby homeowners from equity loss.
Assistance is available to homeowners who may be facing foreclosure or are having difficulty making mortgage payments due to an economic crisis. The Minnesota Homeownership Center has access to the Homeownership Advisors Network that provides free resources to help reduce the likelihood of foreclosure.
What policies can help prevent and respond to foreclosures?
Related Case Studies
Minnesota Foreclosure Partners Council
The Minnesota Foreclosure Partners Council was convened in January 2007...
Woodbury Foreclosure Purchase Plan
The objective of the Woodbury Foreclosure Purchase Program is to encourage the purchase of foreclosed properties in the City of Woodbury by providing financing to low- and moderate-income purchasers...