Gov. Tim Pawlenty on Monday announced initiatives aimed at reducing home foreclosures statewide, including a "pact" that encourages lenders to negotiate with high-risk borrowers.
In addition, the state is sponsoring a series of home foreclosure workshops and has established a hotline for loan counselors. Minnesota also will make third-party mediators available to lenders and homeowners who are renegotiating loan agreements. Mediators will be funded through state grants, Pawlenty said.
The state also has asked lenders to sign the Minnesota Foreclosure Prevention Compact. Participants in the pact agree to work with foreclosure prevention counselors, contact high-risk borrowers and make an effort to modify loans. Members also agree to report progress on loan modifications to the state.
The number of home foreclosures in Minnesota reached 20,573 in 2007, up 84 percent compared to the prior year, Pawlenty reported in a press statement.
Last week, the City of St. Paul stepped up efforts to get lenders to fix and sell foreclosed homes scattered across the city.
The city sent letters to JPMorgan Chase & Co. Wells Fargo & Co., U.S. Bancorp, Deutsche Bank and HSBC Bank USA. It also sent a letter to MERS, which owns an electronic mortgage registry system.
There are roughly 1,700 registered vacant properties in St. Paul, Mayor Chris Coleman said in a statement.
source
Biz Journals.com
Biz Journals.com
