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Minnesota short sales will be increasing through the rest of 2010. Approximately 25% of MN homeowners are underwater and that percentage will increase as the market continues to decline. How homeowners will react to this is hard to predict. I expect that some homeowners will try to do the “responsible” thing and keep paying their mortgages (is it really responsible to mortgage your family’s future like that???). Most homeowners who do a little research into their options and MN foreclosure laws will most likely allow their properties to go to foreclosure or will contact a MN short sale Realtor to help them sell the property.
T2 Partners has a fantastic presentation that explains the foreclosure crisis in simple terms here
If you are upside down on your property and would like to review your options call MaryAlice Short at 612-746-1363 or email her at MaryAlice@MNRealEstateTeam.com for further information.
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When you see the value of your property drop by 10% or more in one year, it is hard to see how you will ever get that value back. Historically the Minnesota market has averaged 6% appreciation in housing values. Even when the market stabilizes, I suspect we will see 1-3% increases for some time, plus your property will have probably dropped by 30-40% by the end of all of this.
How long does it take for your property to get back to 2007 values (40% loss) by increasing only 1-3% per year? 10-15 years. Hope you love that house you are in!