Minnesota Receives $4.3 Million Grant to Fight Foreclosure
April 11th, 2008 by 
Joseph Smith
As Minnesota is currently experiencing a record number of homeowners in default facing foreclosure and foreclosure properties currently on the market, the state is making solid moves to come to the aid of indebted borrowers. The state will use a $4.3 million grant to help an estimated 7,000 borrowers avoid a foreclosure in 2008.
The grant is the second largest of its kind to be handed out in the nation, and Minnesota’s Governor Tim Pawlenty said that it will be used mainly to fund more foreclosure counselors so that they can expand their breadth of reach and effectiveness in getting to homeowners who need assistance, These foreclosure counselors provide advice on avoiding foreclosure by refinancing, working with lenders, or selling properties beforea foreclosure occurs.
Pawlenty, however, is opposed to the suggestion for a moratorium on foreclosures in his state, which has been proposed by the state Senate. He has said publicly that he would veto any such bill that came across his desk.
With over 37,000 new foreclosures predicted to come onto the books in Minnesota this year, the state could definitely use the money, especially since only 20,000 were sold off last year. The drastic increase, coupled with the economic recession, could have drastic effects on the state’s economy.
