Foreclosues way up in Minneapolis,
including Southside

As predatory lending schemes of the ’90s take their toll on homeowners, foreclosure rates are rising all over the country. Minneapolis has been hit particulary hard by foreclosures, with numbers doubling from 320 in the first quarter of last year to 678 in the first quarter this year.

The City of Minneapolis has created a website where residents can get information for Minneapolis homeowners facing possible foreclosures. It also includes links to mortgage information for first-time homebuyers and homeowners interested in refinancing so they can avoid loans that could put them on the path to foreclosure. In addition, the site links visitors to organizations that promote homeownership.

“Foreclosures have a significant impact on neighborhoods,” Council Member Gary Schiff said. “Irresponsible mortgage companies are weakening communities, creating vacant and blighted homes. Foreclosures give mortgage lenders, such as banks, the right to repossess properties when borrowers are unable to pay off their loans. In addition to leaving residents without their home investments, these foreclosures also undermine communities. A foreclosed home can remain empty for months or even years, becoming a target for arson and other vandalism.”