Foreclosures, near-North Minneapolis, Via Star-Tribune Foreclosure Map
It’s getting hard to keep up with the now daily real-estate-is-going-to-hell in-handbasket data stream, but we wanted to point out a couple of stats from some of the recent coverage that had us pausing mid-read.
For instance, from the Pioneer Press, on North Minneapolis, which as you can see from the map above, is Ground Zero for the Twin Cities foreclosure problem:
In the Jordan area of North Minneapolis, banks are repossessing homes at a rate of about 200 per half-square mile — the highest rate in the Twin Cities
And this, from the Strib, detailing an FBI raid of perhaps the biggest fraud-for-profit outfit yet:
"The affidavit indicates that about 150 north Minneapolis properties foreclosed on in one six-month period earlier this year passed through TJ Waconia’s hands.
That’s one in every five foreclosed properties in that area in that period,…"
Update: Commenter John Hoff went all Columbo and posted at least a partial list of properties that passed through TJ Waconia and are now in foreclosure. Nice work there.
One thing to keep in mind is that these properties aren’t by definition damaged goods – as always there is a market value for any property – its just that the history of values on these properties will have very little to do with reality, since they were inflated for fraudulent purposes.
Of course, these fraudulent sales distort the market, because they become comparable (albeit inflated) sales for legitmate transactions. Because of the sheer volume of properties involved, it is highly likely that many legit buyers in north paid more than the true market value. This is where mortgage fraud hurts everybody.