Foreclosure activity in the Twin Cities surged earlier this year, but with the unemployment rate falling fewer people are falling behind on their payments.
RealtyTrac said today that across there were 210,941 foreclosure filings — default notices, scheduled auctions and bank repossessions — across the country during January. That was a 3 percent increase from the previous month but a 19 percent decline from January 2011. That translates into one in every 624 homeowners receiving a foreclosure filing during the month. In Minnesota filings were up 15 percent from December and 17 percent from a year ago.
“Although overall foreclosure activity was down from a year ago for the 16th straight month in January, we continue to see signs on a local and regional level that the frozen-up foreclosure process is beginning to thaw,” said Brandon Moore, CEO of RealtyTrac. He said that foreclosure activity was up on a year-over-year basis for the first time in more than 12 months in Florida, Illinois, Indiana and Pennsylvania.
The Mortgage Bankers Association weighed in on the issue with a report that said that during the last quarter of 2011 the delinquency rate for mortgage loans in Minnesota was 5.28 percent - that was a slight decline from the third quarter. In addition, the number of loans that moved into the foreclosure process also fell during the quarter.