Recent statistics in the Minneapolis and St Paul area suggest that foreclosure notices are still being sent to homeowners at 2008 and 2009 paces. Before a bank or mortgage holder can repossess a property they must file a foreclosure notice. There is typically a minimum period of time they need to file this notice before they actually foreclose on the home, which is why you homeowners are not kicked out right away.
So to stare into our crystal ball and predict how many more bank-owned properties will be coming on the market in the future, we simply need to look at these number of notices and we can be fairly certain that the foreclosure rate in MN is not going down drastically anytime soon.
I would expect that in 2011 and 2012 we will still have a good numbers of REO’s hitting the market in the twin cities, but instead of being the bottom-barrel $20,000 homes in Minneapolis and St Paul, they will likely be in the surrounding suburbs and outer metro areas.
The good news for first time home buyers is that this means prices won’t be climbing steeply anytime soon, and there’s sure to be a good number of homes on the market which means you have more choices when it’s your time to buy.
This is great information, as well as great news for the market you serve so well … first time buyers. Thanks for sharing!