City using 311 to fight Southside foreclosure rates

Minneapolis neighborhoods south of downtown are facing rising foreclosure rates, with numbers second only to the north side’s. The situation is prompting city officials to make it easier for residents to get help.

Residents facing a possible foreclosure can now call 311, the city’s three-digit phone number for city information and services. Callers will then be put in touch with organizations that can help homeowners prevent foreclosures.

This year, more homes than ever have been foreclosed in south Minneapolis. As of Nov. 3, there have been 340 foreclosures recorded south of Interstate 94 and west of 35W. That’s triple the area’s total for all of 2002.

Central is the hardest hit neighborhood on the south side in 2006, where there have been 54 foreclosures during this period. East Phillips, Powderhorn Park and Standish are also experiencing high foreclosure rates.

“Homeowners aren’t the only ones hurt by rising foreclosures,” said Council Member Elizabeth Glidden, whose ward includes the Central neighborhood and half of Powderhorn Park. “Communities also suffer when these empty homes become targets for robberies and vandalism.”

“Much of the problem stems from predatory lending,” said Council Member Gary Schiff, who has constituents in East Phillips and Powderhorn Park. “Artificially high property appraisals and unfair lending practices are wiping out wealth and hurting neighborhood stability.”

Since the 311 foreclosure prevention service was formally announced in mid-November, more than 30 people have called for help. The key is getting people to call as soon as they sense problems making mortgage payments. Homeowners in this predicament often don’t seek help until they’ve already missed two or more mortgage payments, and by then it’s too late. The earlier potential foreclosure situations are addressed, the more likely foreclosures can be prevented.
Residents can reach 311 call center agents Monday through Friday, 7 a.m. to 11 p.m. or e-mail them at Minneapolis311@ci.minneapolis.mn.us.