Mixed bag projected for area home foreclosures

Minnesota Foreclosure & Real Estate News

by Barbie Porter

Auctions of foreclosed homes tell the tale of a homeowner's nightmare becoming reality.

More than one million homes throughout the country are in foreclosure, the highest rate ever recorded.

Even Ed McMahon is understanding the harshness of a slow economy.

After falling behind $644,000 on his house payments on a $4.8 million dollar mortgage, the famous host of Star Search and sidekick to Johnny Carson may likely face the same fate as some area homeowners.

Foreclosure.com reported 10 houses in Frazee were on the market due to foreclosures, as were three houses in Vergas, three in Pelican Rapids, four in Perham, one in Dent and 16 houses in Detroit Lakes.

According to HousingLink, a Minnesota-based non-profit organization, the worst is yet to come.

HousingLink compiled a report reviewing foreclosures in the state's 87 counties and projected the number of foreclosures in each county for 2008.

"Each county's 2008 foreclosure projection is reflective of its own foreclosurepattern from the previous year and adjusted by the region's average to account for overall foreclosure trends," the report stated.

The findings reported Becker County will continue its steady increase of foreclosures that began in 2005, while Otter Tail County may see a minimal decline this year.

Otter Tail County foreclosures decline, while Becker's increase

In 2005, Otter Tail County saw foreclosure on 59 homes. The following year the county saw a drastic increase with 92 homes foreclosed.

By 2007, however, a decline began with 89 foreclosures in Otter Tail County.

HousingLink projected foreclosures in Otter Tail County will continue to decline in 2008, and projected 60 foreclosures in the county.

In 2005, Becker County saw foreclosure on 25 homes. The next year the foreclosures remained fairly consistent with 29.

In 2007, Becker County had 50 foreclosed homes and HousingLink projected 84 in 2008.

The top three counties with the dubious honor of having the most projected foreclosures in 2008 include Hennepin County with 8,585 foreclosures projected, Ramsey County with 3,419 expected foreclosures and Dakota County with 2,637 foreseen foreclosures.

When homes are foreclosed in Minnesota, there generally is no court action. Instead, law requires notice of foreclosure by advertisement.

The lender must publish a notice of the sale date for six weeks in a newspaper of general circulation in the county the property is located.

The notice must be served to the owners at least four weeks prior to the foreclosure sale, unless it's a homestead property, which requires eight weeks notice.

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