Hope in Twin Cities Housing Market

MINNEAPOLIS - Another glimmer of hope in the housing market, as the foreclosure rate appears to be leveling off nationwide. The same is true here in Minnesota, but no one’s banking on a quick end to the crisis.

RealtyTrac’s new national report ranks Minnesota 29th in foreclosure activity. But the ranking is no reason to brag, when so many people are still seeking help. Cheryl Peterson of Twin Cities Habitat for Humanity is on the front-lines of the foreclosure crisis, helping clients keep their homes.

Peterson said, “We’re seeing a lot more customers coming to us as a result of job loss and really as a result of the current state of the economy.”

Until the unemployment rate improves, Peterson doesn’t expect the problem to let up. The Foreclosure Prevention Program at Habitat for Humanity is serving more people than ever before. The program helped 645 clients in 2008, 863 in 2009, and is on track to help more than one thousand clients this year.

Counseling for homeowners may be partly responsible for a “leveling” off in foreclosures nationwide. An industry report from RealtyTrac shows the foreclosure rate fell two percent from January to February across the U.S. But experts warn serious problems remain.

Julie Gugin directs the Minnesota Home Ownership Center, where counselors are also keeping busy.

Gugin said, “We’re encountering individual households who are desperate for answers about how they can stabilize their housing for their families. In the Twin Cities metro, yearly foreclosure rates dropped 16% from about 17 thousand in 2008 to around 14 thousand in ’09. Counselors believe more loan modifications are needed for continued progress. Homeowners are seeing a glimmer of hope, but the foreclosure forecast remains uncertain.

Gugin said, “We’re going to be doing this (counseling) for a long time.”