Minnesota Considers Legislation to Help Distressed Homeowners
By jason | March 7, 2008
In an effort to curb the rising foreclosure rate in the state, Minnesota state officials are working hard to offer assistance to distressed homeowners.
State legislators are currently reviewing three bills that would offer varying degrees of assistance to owners of distressed homes to help them avoid foreclosure and eviction. One of the bills would require all lenders in Minnesota to contact a state approved foreclosure counselor on behalf of a homeowner when a default is registered, so that the counselor can get in touch with them and provide information and assistance on their options regarding avoiding a foreclosure. Another measure would ensure that homeowners would have foreclosure related evictions officially stricken from their record, so that their ability to rent another home or apartment won’t be hindered by their bad history. Still another would legally shorten the time it takes to finalize a foreclosure sale from 6 weeks to five weeks, so properties could get back on the market and available to buyers more quickly, so that abandoned, inactive properties won’t be clogging the market.
The measures are regarded by many as quite practical, and working together many feel they could seriously have an effect on both reducing the high inventory of foreclosures and helping distressed homeowners keep their homes. Most people feel that the required foreclosure counseling may have the biggest direct effect on the market. Most homeowners don’t even contact their lenders or seek any solution when hit with notices of default, hoping a foreclosure will go away. These services will help homeowners seek solutions that avoid a foreclosure, such as settling debts, refinancing or selling their property as a pre foreclosure.
In fact, as many states begin adopting similar measures to inform distressed homeowners about their options, it could open up many options for investing in pre foreclosures for homebuyers. As more distressed homeowners seek to sell off their homes before facing a credit ruining foreclosure, investors may be wise to start searching for these homes so that they can make offers and win some great deals. Often times, buying pre foreclosures can be mutually beneficial for buyer and seller, as the buyer can save a huge percentage off market value and the homeowner can pay off their debt to the lender.
Already investors are seeking to buy up foreclosure properties all over the nation due to the incredible surplus, and as pre foreclosures may become more available as homeowners become more aware of their ability to sell to avoid foreclosure, this could create some interesting opportunities for investors and homebuyers in Minnesota and beyond.
Find more Foreclosure Articles.
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Topics: Distressed Homeowners | 2 Comments »
May 27th, 2008 at 2:43 pm
[...] homeowners begin to receive more assistance and the state legislature considers passing laws to aid homeowners in distress, the foreclosure rates for the state could continue to slide, but this remains to be seen. Share [...]
May 27th, 2008 at 2:45 pm
[...] might be surprised to know that distressed homes do not always end up in foreclosure. If the owners are lucky, they will be able to sell them before [...]