Foreclosure situation different outside Twin Cities

"Foreclosure situation different outside Twin Cities"
By Marisa Helms, Bemidji Pioneer, March 15, 2008

The foreclosure crisis affects all of Minnesota, although experts say those outside the Twin Cities area apparently face issues other than the concern with subprime lending. Jeff Crump (Housing Studies), subprime lending and foreclosure expert, agrees that subprime lending is less of a factor in greater Minnesota.

Crump's research indicates 25 percent of households in greater Minnesota have subprime mortgages, and a "significant federal response" will be required to resolve the crisis.

"'The federal government needs to move quickly to try to establish a program to refinance people out of loans they can't pay,' Crump said. 'They did this in the 1930s - the Homeowners Loan Corporation.

"'I'm afraid it should have happened a year or two ago, and I'm afraid it won't happen until after January. That worries me -- the longer this goes on, the more we get in trouble. Foreclosures depress the housing market in general and that's costing everybody their home equity.'"