Foreclosure Starts on the Rise in Minnesota and Nationally

August 22, 2012

Plenty of Minnesotans have had to add foreclosure risks to their list of financial troubles in recent years. Fortunately, many have stopped foreclosure by filing for Chapter 13 bankruptcy and taking charge of their financial future. But foreclosure numbers have continued to rise in Minnesota and elsewhere.

According to a new report from the mortgage processor Lender Processing Services, initiation of sheriff's sales in Minnesota rose 10 percent between May 2011 and May 2012. That's slightly below a national increase in foreclosure starts of almost 12 percent. Foreclosure starts peaked nationwide in early 2009, and foreclosure sales crested nearly two years later.

Financial analysts are identifying one important reason behind this steady increase: the fallout from the "robo-signing" scandal that emerged a couple of years ago. While delinquent home mortgages continued to grow, mortgage processing companies were somewhat limited in their ability to act until striking a $25 billion dollar settlement with state and federal attorneys general.

As the threat of foreclosure actions rises, Minnesota bankruptcy attorneys can advise clients about the distinct advantages of taking on financial problems and forging a more secure future. Recent legal developments regarding "lien stripping" might allow a homeowner to eliminate second mortgages such as home equity loans.

Exploring the Advantages of Bankruptcy to Save a Home and Other Assets

People hear plenty of misinformation about bankruptcy as opposed to other debt relief strategies. The bottom line: federal and Minnesota bankruptcy laws allow for asset exemptions, provide immediate relief from creditor harassment and are a time-honored legal strategy for heading off the worst effects of overwhelming debt. A conversation with a bankruptcy lawyer can provide insights and immediate breathing room.

Article provided by Hoglund, Chwialkowski & Mrozik, PLLC
Visit us at www.bankruptcyminnesota.com