Did you know that the foreclosure rate in Minnesota is the highest in the Upper Midwest? The Minneapolis Star Tribune reported that last week. Minnesota 2020 has a proposal to help alleviate that problem. They suggest that Minnesotans consider starting a new program that would guarantee new homebuyers’ down payments for five years even if the market continues to decline. This type of “price floor” program would stop the housing market free fall and get local markets moving again, according to report authors.
They maintain that federal loans will not be successful if property values decrease – a Minnesota Home Values Guarantee Program could help homebuyers mitigate that risk.