2013 Annual Foreclosures in Minnesota:

Transcription

1 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sale Data February 7, 2014 Published by: Prepared by: 275 Market Street Suite 509 Telephone: (612) Facsimile: (612)

2 About the Minnesota Homeownership Center Recognized nationally as a model of homeownership and foreclosure prevention programming, the Minnesota Homeownership Center convenes a network of 50 community-based nonprofit, government and tribal organizations to deliver homeownership education and foreclosure prevention services to low- and moderate-income households throughout Minnesota. Learn more at About Greater Minnesota Housing Fund The Greater Minnesota Housing Fund is a private, nonprofit organization whose mission is to strengthen families and communities in greater Minnesota through the creation and preservation of affordable housing. Learn more at About Minnesota Housing Minnesota Housing finances and advances affordable housing opportunities for low- and moderateincome Minnesotans to enhance quality of life and foster strong communities. Learn more at About Family Housing Fund The Family Housing Fund is a nonprofit organization whose mission is to provide safe, affordable, sustainable homes to families and children in the Twin Cities metropolitan area through ongoing partnerships with the public and private sector. Learn more at About HousingLink HousingLink is a primary distributor of affordable housing information to service agencies, housing providers, and policy workers in the Twin Cities metropolitan area and selected regions in Greater Minnesota. Learn more at All rights reserved. Copyright Page 2 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

3 Table of Contents Minnesota Foreclosure Figures... 1 Nine-Year History of Minnesota Foreclosures... 1 Figure 2: Map of Minnesota Foreclosures by County ()... 2 Figure 3: Map of Minnesota Foreclosure by County ()... 3 Figure 4: MN County Foreclosure Counts, (sorted by county)... 4 Figure 5: MN County Foreclosure Counts, (sorted by total)... 6 Figure 6: MN County Foreclosure s, (sorted by county)... 8 Figure 7: MN County Foreclosure s, (sorted by rate) Study Purpose and Objectives Methodology Overview of the Foreclosure Process Sheriff s Sale Records Data Collection Foreclosure Metric... 14

4 Minnesota Foreclosure Figures Nine-Year History of Minnesota Foreclosures There were 11,834 foreclosures in Minnesota in. This number is a 34 percent decrease from 2012, with the relief being relatively balanced between the Twin Cities metro area (down 37 percent) and Greater MN (down 30 percent). This marks the third consecutive year of double-digit percentage declines in foreclosure, with coming in at less than half the total number of statewide foreclosures than the last high water mark total in Perhaps even more notable: the number of foreclosures in is just below the total number in 2006, the year generally regarded as the first year of the foreclosure crisis. 30,000 25,000 Minnesota Twin Cities Greater Minnesota 20,000 15,000 10,000 5, Figure 1 The following pages include figures and appendices detailing Minnesota foreclosures. They include: Foreclosure Counts Map A map of Minnesota representing total foreclosures by county in. p.2 Foreclosure s Map 2012 Foreclosure Counts Data 2012 Foreclosure s Data A map of Minnesota representing foreclosure rate (in percent) by county in. Tables detailing foreclosure counts from 2012 to, sorted by county and total. Tables detailing foreclosure rates from 2012 to, sorted by county and rate. p.3 p.4-7 p.8-11 More Minnesota foreclosure information and historical data can be found online at or Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 1

5 Minnesota Foreclosures in by County Actual number of foreclosures is indicated along with each county name Figure 2 Kittson 1 Roseau 20 Lake of the Woods 8 Polk 25 Marshall 6 Norman 9 Pennington 7 Red Lake 2 Mahnomen 11 Clearwater 10 Beltrami 48 Koochiching 26 Itasca 106 St. Louis 377 Lake 24 Cook 4 Clay 54 Becker 40 Hubbard 41 Cass 100 Wilkin 8 Traverse 6 Big Stone 3 Lincoln 5 Grant 15 Stevens 11 Lac qui Parle 6 Otter Tail 98 Lyon 32 Swift 10 Yellow Medicine 11 Pipestone 10 Murray 12 Douglas 64 Pope 16 Chippewa 29 Redwood 20 Wadena 29 Todd 73 Kandiyohi 70 Renville 21 Cottonwood 17 Stearns 246 Brown 19 Meeker 63 Watonwan 24 Morrison 58 McLeod 93 Benton 70 Wright 372 Sibley 39 Nicollet 43 Blue Earth 101 Aitkin 45 Mille LacsKanabec Sherburne 280 Le Sueur 70 Waseca 36 Isanti 170 Anoka 964 Rice 179 Steele 98 Carlton 76 «Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston Foreclosures in Minnesota: A Report Based on County Sheriff's Sale Data Funded by: MN Homeownership Center, Greater MN Housing Fund, Family Housing Fund, & MN Housing Data Source: County reported sheriff's sales. Crow Wing 210 Pine 119 Chisago 212 HennepinRamsey Carver 172 Scott Dakota Goodhue 113 Dodge 48 Washington 589 Wabasha 32 Olmsted 212 Winona 51 Foreclosure Counts 0-50 (n = 49) (n = 22) (n = 7) (n = 4) 501-1,000 (n = 3) 1,001-2,500 (n = 1) > 2,501 (n = 1) Miles Page 2 Foreclosures in Minnesota: A Report Based on County Sheriff's Sales Data (February 7, 2014)

6 Minnesota Foreclosure s in by County Actual number of foreclosures is indicated along with each county name Figure 3 Kittson 1 Roseau 20 Lake of the Woods 8 Polk 25 Marshall 6 Norman 9 Pennington 7 Red Lake 2 Mahnomen 11 Clearwater 10 Beltrami 48 Koochiching 26 Itasca 106 St. Louis 377 Lake 24 Cook 4 Clay 54 Becker 40 Hubbard 41 Cass 100 Wilkin 8 Traverse 6 Big Stone 3 Lincoln 5 Grant 15 Stevens 11 Lac qui Parle 6 Otter Tail 98 Lyon 32 Swift 10 Yellow Medicine 11 Pipestone 10 Murray 12 Douglas 64 Pope 16 Chippewa 29 Redwood 20 Wadena 29 Todd 73 Kandiyohi 70 Renville 21 Cottonwood 17 Stearns 246 Brown 19 Meeker 63 Watonwan 24 Crow Wing 210 Morrison 58 McLeod 93 Benton 70 Wright 372 Sibley 39 Nicollet 43 Blue Earth 101 Aitkin 45 Mille LacsKanabec Sherburne 280 Scott 354 Anoka 964 HennepinRamsey Carver 172 Le Sueur 70 Waseca 36 Isanti 170 Rice 179 Dakota 925 Steele 98 Carlton 76 Goodhue 113 Olmsted 212 Winona 51 «Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston Foreclosures in Minnesota: A Report Based on County Sheriff's Sale Data Funded by: MN Homeownership Center, Greater MN Housing Fund, Family Housing Fund, & MN Housing Pine 119 Chisago 212 Dodge 48 Washington 589 Wabasha 32 Foreclosure = Number of foreclosed mortgages as a percent of total residential parcels Data Source: County reported sheriff's sales and 2012 parcel counts from the MN Department of Revenue Foreclosure s 0% % (n=16) 0.25% - 0.5% (n=31) 0.5% % (n=25) 0.75% - 1.0% (n=10) 1.0% - 1.5% (n=5) 1.5% - 2.0% (n=0) >2.0% (n=0) Miles Page 3 Foreclosures in Minnesota: A Report Based on County Sheriff's Sales Data (February 7, 2014)

7 Figure 4: MN County Foreclosure Counts, (sorted by county) Q1 Q2 Q3 Q Total Total 2012 to % Change Twin Cities Metro 2,615 2,266 2,157 1,747 10,686 6,754-37% Greater Minnesota 1,835 1,614 1,565 1,326 7,209 5,080-30% Minnesota 4,450 3,880 3,722 3,073 17,895 11,834-34% Aitkin % Anoka , % Becker % Beltrami % Benton % Big Stone % Blue Earth % Brown % Carlton % Carver % Cass % Chippewa % Chisago % Clay % Clearwater % Cook % Cottonwood % Crow Wing % Dakota , % Dodge % Douglas % Faribault % Fillmore % Freeborn % Goodhue % Grant % Hennepin ,130 2,596-37% Houston % Hubbard % Isanti % Itasca % Jackson % Kanabec % Kandiyohi % Kittson % Koochiching % Lac qui Parle % Lake % Lake of the Woods % Le Sueur % Lincoln % Lyon % Mahnomen % Page 4 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

8 Q1 Q2 Q3 Q Total Total 2012 to % Change Marshall % Martin % McLeod % Meeker % Mille Lacs % Morrison % Mower % Murray % Nicollet % Nobles % Norman % Olmsted % Otter Tail % Pennington % Pine % Pipestone % Polk % Pope % Ramsey ,655 1,154-30% Red Lake % Redwood % Renville % Rice % Rock % Roseau % Saint Louis % Scott % Sherburne % Sibley % Stearns % Steele % Stevens % Swift % Todd % Traverse % Wabasha % Wadena % Waseca % Washington % Watonwan % Wilkin % Winona % Wright % Yellow Medicine % Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 5

9 Figure 5: MN County Foreclosure Counts, (sorted by total) Q1 Q2 Q3 Q Total Total 2012 to % Change Twin Cities Metro 2,615 2,266 2,157 1,747 10,686 6,754-37% Greater Minnesota 1,835 1,614 1,565 1,326 7,209 5,080-30% Minnesota 4,450 3,880 3,722 3,073 17,895 11,834-34% Hennepin ,130 2,596-37% Ramsey ,655 1,154-30% Anoka , % Dakota , % Washington % Saint Louis % Wright % Scott % Sherburne % Stearns % Chisago % Olmsted % Crow Wing % Rice % Carver % Isanti % Pine % Goodhue % Mille Lacs % Mower % Itasca % Blue Earth % Cass % Otter Tail % Steele % Freeborn % McLeod % Carlton % Todd % Benton % Kandiyohi % Le Sueur % Douglas % Kanabec % Meeker % Morrison % Clay % Winona % Beltrami % Dodge % Aitkin % Nicollet % Hubbard % Becker % Page 6 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

10 Q1 Q2 Q3 Q Total Total 2012 to % Change Sibley % Waseca % Lyon % Wabasha % Chippewa % Wadena % Faribault % Fillmore % Koochiching % Martin % Polk % Lake % Watonwan % Renville % Redwood % Roseau % Brown % Nobles % Cottonwood % Pope % Grant % Houston % Jackson % Murray % Mahnomen % Stevens % Yellow Medicine % Clearwater % Pipestone % Rock % Swift % Norman % Lake of the Woods % Wilkin % Pennington % Lac qui Parle % Marshall % Traverse % Lincoln % Cook % Big Stone % Red Lake % Kittson % Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 7

11 Figure 6: MN County Foreclosure s, (sorted by county) Q1 Q2 Q3 Q Twin Cities Metro Greater Minnesota Minnesota Aitkin Anoka Becker Beltrami Benton Big Stone Blue Earth Brown Carlton Carver Cass Chippewa Chisago Clay Clearwater Cook Cottonwood Crow Wing Dakota Dodge Douglas Faribault Fillmore Freeborn Goodhue Grant Hennepin Houston Hubbard Isanti Itasca Jackson Kanabec Kandiyohi Kittson Koochiching Lac qui Parle Lake Lake of the Woods Le Sueur Lincoln Lyon Mahnomen Page 8 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

12 Q1 Q2 Q3 Q Marshall Martin McLeod Meeker Mille Lacs Morrison Mower Murray Nicollet Nobles Norman Olmsted Otter Tail Pennington Pine Pipestone Polk Pope Ramsey Red Lake Redwood Renville Rice Rock Roseau Saint Louis Scott Sherburne Sibley Stearns Steele Stevens Swift Todd Traverse Wabasha Wadena Waseca Washington Watonwan Wilkin Winona Wright Yellow Medicine Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 9

13 Figure 7: MN County Foreclosure s, (sorted by rate) Q1 Q2 Q3 Q Twin Cities Metro Greater Minnesota Minnesota Isanti Mille Lacs Chisago Pine Kanabec Sherburne Rice Wright Anoka Cass Crow Wing Mower Scott Ramsey Steele Todd McLeod Washington Dakota Freeborn Meeker Dodge Hennepin Goodhue Le Sueur Sibley Mahnomen Carlton Benton Aitkin Itasca Carver Chippewa Watonwan Stearns Wadena Blue Earth Grant Waseca Saint Louis Hubbard Lake Koochiching Page 10 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

14 Q1 Q2 Q3 Q Morrison Kandiyohi Douglas Lake of the Woods Olmsted Nicollet Faribault Otter Tail Beltrami Wabasha Lyon Roseau Cottonwood Winona Becker Pope Renville Traverse Fillmore Clay Redwood Stevens Clearwater Murray Martin Wilkin Norman Jackson Rock Nobles Pipestone Yellow Medicine Swift Polk Cook Houston Brown Lac qui Parle Lincoln Pennington Marshall Big Stone Red Lake Kittson Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 11

15 Study Purpose and Objectives This report was commissioned by the Minnesota Homeownership Center. It provides policymakers and other community leaders with updated Minnesota foreclosure data as they design solutions to address foreclosures and their impact on Minnesota communities. This report is part of the Foreclosures in Minnesota: A Report Based on County Sheriff s Sale Data series, in which comparable reports have been released annually since 2007 and semi-annually since HousingLink was contracted to conduct the research and prepare the analysis in all reports. Key updated foreclosure data included in this report are as follows: Updated foreclosure counts for all Minnesota counties including the Twin Cites sevencounty metro and Greater Minnesota to reflect actual foreclosures through calendar. Updated foreclosure rates for all Minnesota counties in calendar. 1 The calculation of foreclosure rates makes it possible to compare the relative impact of foreclosure on areas with different population sizes Parcel Counts on which to base rate calculations. Residential parcel counts by county are provided by the Minnesota Department of Revenue 2 and are updated annually. This report does not include a foreclosure projection. Reports issued prior to 2009 included a foreclosure projection. These projections were based solely on recent foreclosure trends with the assumption that the same patterns would continue into the upcoming year. Due to continuing uncertainty about future economic conditions, this report does not include a projection. Some factors that may contribute to foreclosures include but are not limited to: unstable economic conditions; increasing unemployment rates; falling housing prices; rising numbers of mortgage delinquencies; and resetting or recasting adjustable rate mortgages. Conversely, more active intervention and loss mitigation activities on the part of counselors and lenders help to reduce the number of foreclosures. 1 Releases of Foreclosures in Minnesota: A Report Based on County Sheriff s Sale Data prior to August 2009 release used household estimates to calculate the foreclosure rate. As of the August 2009 report, residential parcels have been used to calculate foreclosure rate. See Foreclosure Metric for more information. 2 For purposes of this report, residential parcel data includes property types Residential, Apartment, Farm with Buildings, >35 Acres, and Farm with Buildings, <35 acres. Page 12 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)

16 Methodology To help understand the methods used in this report, it is important to outline Minnesota s foreclosure timeline. Data is collected throughout the process, much of which is useful for analyzing the characteristics of those mortgages and properties that have defaulted. Overview of the Foreclosure Process There are two types of foreclosure processes in Minnesota: 1) Judicial Foreclosure, which is conducted like any other form of civil lawsuit. 2) Foreclosure by Advertisement, which is a type of non-judicial foreclosure. Since the large majority of Minnesota foreclosures occur by advertisement, that process is described in detail below. Foreclosure by Advertisement: Foreclosures in Minnesota take place at the county level and are regulated, for the most part, by state legislation. The foreclosure process can start as early as 30 days after a borrower first misses a mortgage payment. Once the mortgage is in delinquency, the lender empowers an attorney who files notice of pendency against the occupant, starting the foreclosure process. Sample Foreclosure by Advertisement Action Timeline on a Mortgage Shortly thereafter, the attorney publishes a foreclosure sale notice in a local newspaper (at least six weeks before the date of the sheriff s sale) and the county sheriff serves the filing to the occupant. At Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014) Page 13

17 any point before the sheriff s sale, the property owner can reinstate the mortgage by paying all dues, fees and expenses. 1 After the notice has been published and served, the sheriff s sale occurs and the sheriff auctions the property off to the highest bidder, resulting in foreclosure of the mortgage. Following the sale is a redemption period of up to six months 2, during which the borrower can redeem the property by paying the amount of sale plus interest, taxes, fees, or liens on the property. Borrowers who do not redeem the property by the expiration of the redemption period lose title and right of occupancy in the property. Sheriff s Sale Records Sheriff s sale records are the primary data that identify foreclosed properties and are identified as foreclosures within this report. However, it is helpful to understand the following: Sheriff s sale records do not reflect the total number of properties that enter the foreclosure process. Some portion of properties identified in sheriff s sale records do not result in actual loss of title and occupancy for borrowers because they are redeemed within the allowed timeframe. A small percentage of sheriff s sale records do not relate to residential mortgages. 3 According to a previous study conducted by the Federal Reserve and Macalester College, less than 2 percent of Minneapolis-St. Paul properties sold at sheriff s sales are commercial. Also, HousingLink estimates approximately 2 percent of properties in its foreclosure database are the result of association liens. Taking into account these two figures, it is estimated that at least 95 percent of the foreclosures in this study represent residential properties. Data Collection To obtain the number of sheriff s sales in each county, HousingLink contacted all Minnesota counties. For the updates in this report, counties were asked to provide HousingLink with the total number of sheriff s sales that occurred in their jurisdiction through the end of the reporting period. Foreclosure Metric The calculation of a foreclosure rate makes it possible to compare the relative impact of foreclosures on areas with different population sizes. The foreclosure rate used in this report identifies the number of sheriff s sales as a percent of total residential parcels. foreclosure rate (in percentage) = sheriff s sales in county / residential parcels in county 1 As of June 15, 2009, MN State Law allows homeowners to delay their foreclosure sale. The homeowner must file for postponement between the first publication of the sheriff s sale and 15 days prior to the sale. This reduces the redemption period. See for details. 2 Some exceptions apply. 3 Residential mortgages include single-family and multi-family homes. Page 14 Annual Foreclosures in Minnesota: A Report Based on County Sheriff s Sales Data (February 7, 2014)