The number of home foreclosures in Minnesota shot up more than 20 percent in the third quarter, reaching the second-highest level since the foreclosure crisis began, numbers released Friday show.
The latest foreclosure count indicates that the crisis devastating neighborhoods and roiling housing markets is worsening in the state despite extensive efforts to address it.
There were 7,254 homes sold off in sheriff's auctions in the third quarter, up about 23 percent from a year ago and up 15 percent from the previous quarter, according to HousingLink, a Minneapolis nonprofit affordable housing group that tracks foreclosures. The bulk of the activity was in the seven-county metro area.
HousingLink's numbers differ from those published last week by California-based RealtyTrac Inc., which counts auctions and other foreclosure-related actions such as default notices prior to auctions. That broader measure was down nearly 11 percent for the third quarter in the 13-county metro area, which includes part of western Wisconsin.
The swell in foreclosures reported by HousingLink came as a surprise.
"These numbers are disturbing," said Julie Gugin, executive director at the St. Paul-based Minnesota Home Ownership Center. "I thought by this time that we would see a dip, and we're not."
Gugin said that she thinks the numbers are a reflection of prolonged economic weakness and joblessness, and the financial difficulties families face as people take new jobs that pay less than old ones, and try to play catch-up on their bills.
Gugin said her organization, which counsels homeowners, has already exhausted its federal funding and won't receive more until March, assuming federal legislation passes.
