Is Minnesota’s foreclosure decline last month only a temporary lull?

Minnesota’s residential real estate market saw 3,053foreclosure notices last month, or one in every 764 housing units.

That’s down slightly from the average of 3,166 per month in the quarter ended Sept. 30, according to RealtyTrac, an online marketplace for foreclosure properties.

Listings for foreclosure and short sales in October totaled 3,742, down more than 16 percent from a year ago in the Twin Cities metro area, according to the Minneapolis Area Association of Realtors. Foreclosure properties sold in the month rose 10.6 percent to an average price of $215,000.

Source: Minneapolis Area Association of Realtors

This coincides with a nationwide decline of 4 percent in foreclosure filings in October in the wake of the “robo-signing” controversy that forced major banks to temporarily halt sending foreclosure notices.

Default notices, scheduled auctions and bank repossessions were reported on 332,172 properties in October, almost exactly the same total reported in October 2009. One in every 389 U.S. housing units received a foreclosure filing during the month.

RealtyTrac also reported large swings in average foreclosure sales price over the past two quarters, ranging from a rise of 45.7 percent in Park Rapids to a drop of 20.3 percent in Cannon Falls.

Source: RealtyTrac

“October marks the 20th consecutive month where over 300,000 U.S. homeowners received a foreclosure notice,” said James J. Saccacio, chief executive officer at RealtyTrac in a press release. “The numbers probably would have been higher except for the fallout from the recent ‘robo-signing’ controversy … and which may result in further decreases in November.”

Minnesota’s foreclosures in October rank in the middle in 25th place.

Comments (2)

  1. Submitted by Glenn Mesaros on 11/12/2010 - 02:34 pm.

    Julia Gordon, Senior Policy Counsel for the Center for Responsible Lending, told members of the Troubled Asset Relief Program (TARP) Congressional Oversight Panel recently:

    “As we’re here today, mortgage servicers are in the process of foreclosing on over two million families. About three million or so more are just weeks away from receiving a notice of default. Over the next several years, the toxic combination of high unemployment and under-water loans could mean a stunning total of more than 13 million foreclosures.”

  2. Submitted by Richard Schulze on 11/12/2010 - 09:01 pm.

    Sorta corresponds to those who are losing unemployment benefits, right? Seriously, though, at this rate we are looking at years for this to play out.

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