Hennepin County Foreclosures Setting Records, and Not the Good Kind

by Alex Stenback on February 8, 2008

This should come as no surprise to our regular readers.  Back on January 15th, we said:

So what about our foreclosure rate?  A quick search of the Hennepin county website shows that in the first 15 days of this year, there have been 338 (!) sherriff’s sales, on pace for 700 foreclosures in Hennepin County.  In January. 

In ALL of January last year there were 218.   

…foreclosures in MN are nowhere near peaking, and will be excacerbated by price declines, and we are just now getting into the reset periods for many of the worst sub-prime ARM’s, with most of the ALT-A, Prime, and Option ARM resets forthcoming.

From MPR today:

According to Julianne Ortman, director of finance for the Hennepin County Sheriff’s office, in January there were more than 700 foreclosures in Hennepin County. That beats the previous high mark set last October by nearly 200.

But that’s not the worst of it. Ortman says redemptions are down. That’s when a person is able to get their house back after it’s gone into foreclosure.

"So in January of 2007, we had 436 sales and 37 redemptions. In January of 2008, we had 711 sales and redemptions I believe were 19," Ortman says. "So we’ve seen those numbers of redemptions drop as the number of sales have increased and that’s one of the more alarming statistics."

Hennepin County Reports Record Foreclosure Numbers [MPR]

{ 1 comment… read it below or add one }

Nate February 9, 2008 at 12:50 pm

My wife and I have been looking at houses in Hennepin county, and in the last couple months a lot of what we’ve been looking at is in pre-foreclosure.

Common signs, the homes were originally bought for 100-200k, had doubled in value by 2006-2007, home equity was extracted so that the current debt on the home is equal to or greater than the high point for the houses value.

You really don’t deal with the “home owners” in this case, just a matter of seeing if the banks will accept a truly lowball offer.

We’re also seeing more homes that were taken back by banks that now need serious work. Either it was a failed flip and still needs a kitchen or other “finishing touches” or pipes have frozen and the bank is selling as is.

Leave a Comment

 

Previous post:

Next post: