More adjustable mortgages will reset in the coming months and years. That can put more home owners at risk of being unable to keep up with their mortgage payments. On today's MN MLS Multiple Listings, there are many foreclosed properties listed. Also, the MN MLS has many short sale listings. Short sale a better alternative to foreclosure. It sells the home at the price lower than the mortgage owed. It is a complicated process, but it can help home owners avoid foreclosure.
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An analysis by the Federal Reserve Bank of Minneapolis this spring predicted that several suburban cities were bound for a flood of foreclosures because tens of thousands of subprime borrowers will face higher payments on their adjustable-rate mortgages.
Cities as geographically diverse as Ham Lake, Apple Valley, Shakopee, Oakdale, Forest Lake, Elk River, Albertville and Plymouth will experience problems, the analysis said, because of concentrations of these types of mortgages.
Also projected as a trouble spot is Woodbury, where concern over an 82 percent increase in foreclosures since last year led city leaders to create a task force to ease the pain. "We saw the writing on the wall and it didn't look pretty," said city analyst Matt Stemwedel.
Woodbury, not long ago the metro's fastest-growth suburb, projects 300 sheriff's sales through 2008 -- 10 times the number five years ago. "Woodbury's not immune to that kind of problem," said Stemwedel, who thinks that "problem loans" issued during the city's hot housing market will lead to trouble for more homeowners.
http://www.startribune.com/local/east/27078804.html