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St. Paul, Minn.

August 12, 2010 7:47 AM

Unemployment driving increase in Minnesota foreclosures

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Minnesota's foreclosure rate was up during the second quarter of this year over the same time last year.

A report out this week from the Minnesota Home Ownership Center shows there were more than 13,000 foreclosures at the end of the second quarter this year, up from just over 11,000 during the same period last year. The report also said that if foreclosures continue at the same pace the state could see 13 percent more foreclosures this year than last.

The Minnesota Home Ownership Center's Ed Nelson said high unemployment is driving the increase in foreclosures.

"They weren't working the same number of hours that they had been working before or a member of the family that was buying the house together had lost their job completely," Nelson said. "And until we see dramatic improvements in the job market -- in the overall -- economy we are going to continue to see these elevated numbers of foreclosures."

Nelson said some counties could see double-digit increases in the number of Sheriff's Sales this year.

Minnesota had more than 26,000 foreclosures in 2008.

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