Minneapolis Continues To Writhe Under Foreclosures

September 10th, 2007 | Tags: Foreclosures

Jordan and Hawthorne are two of the worst affected regions in Minneapolis. It is anticipated that the number will double that of 2006.

In such a situation it is advised that borrowers at the first sign of hiccups should immediately directly contact the lenders. More often than not lenders are willing to negotiate. Refinancing with additional charges should not be done. The best option would be to re-state the terms under a new scheme. Harassed house owners should above all keep their cool, contact counselors and not panic. In Jordan locality the situation is acute with panicky owners in a state of trauma.

There are not enough trained personnel to deal with this type of counseling. Work however has been progressing. It is not all talk but help has materialized in the shape of $10 million loan fund. Unfortunately the group has not been able as yet to release the details of the foreclosures that have been checked and disbursement of loan funds for purchasing foreclosed properties.

The situation is the same in neighbouring Hawthorne where in some block areas only few residents remain. Most of the other areas are completely boarded up and abandoned. The bulldozers will soon set to work on most of the units. But completion will take many years. The cost is steep - $200,000 to get the land and build a structure on it. The aim is to keep the price at par with local rates.

On the positive side investors are snapping up foreclosures for a paltry amount. These are being converted by realtors into rented units. Non-profit organizations are also pitching in by buying of foreclosed properties and giving it a new look. Nevertheless the negative socio-economic impact is far in excess to the bright side of things.

Amber Hawkins and some others are trying to get at the source of the trouble by changing laws and hunting down the blatant offenders with some of the fund released for this purpose. Taking the cue from a recent suit filed in Los Angeles it is being shown that minority neighborhoods are being targeted. This will give the movement a civil right violation colour. If damages are realized then the money will be pumped to brighten up the scarred localities. The whole process is time consuming and it will be not less then five years before things become normal.

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