Unprecedented Increase In Foreclosures Throw Challenge To South Metro Counties
An unprecedented increase in foreclosures in southwest metro counties is posing a challenge to south metro counties. Officials and communities are in a tizzy – what to do and what not to do. A warning has come through to local government bodies that the foreclosure crisis is worsening. This translates into slim budgets to an extreme point.
In Dakota County the warning is that the increased figure of court sales this year is going to be the same as the total number of actual sales of the previous year. In Scott County the prediction is that foreclosures are going to double from the previous year. It will take a couple of years to stabilize.
Mary Monteith of Carver County Community Development Agency referred to it as a “daunting task.” There is a feeling of confusing amongst her colleagues. Jon Ulrich, Scott County Commissioner told her that the number of foreclosures rolling in is too much for their capability to respond. “We’re taking a sip out of a fire hydrant of water,” he said. What makes matters worse is that time is against both lenders and borrowers.
The officials were one in their view that the most important thing is to let the borrowers realize that help is available. The earlier they seek it is the better for them. The government can then take initiatives to assemble financial help packages to steer borrowers through the temporary foreclosure bottleneck. Montieth reiterated that it should not be taken to mean that money is being doled out at random. Public money will not be played around with until officials are convinced that the borrower has the will and the power to overcome the immediate hurdle. It must be shown on paper and ink that they can manage the mortgage.
Scott and Dakota had been ranked among the most affluent counties. In 2001 there were less than 200 court auctions of foreclosed units in Dakota. In 2007 there were less than 1,600 sheriff’s sale – the highest numbers coming from West and South St Paul and Farmington.
It is the house owners associations that are at the receiving end of the foreclosure crisis. Dues relating to unpaid utility bills and trimming of lawns are going unpaid. The most dangerous thing is the falling real estate with prices plummeting to unprecedented levels. The market is trying to reach its point of balance. Meanwhile thousands more are rushing into the foreclosure net.
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