Real Estate News Blog

After a news conference, a backhoe went to work on 2914 Dupont Ave. N, the first of scores of foreclosed houses in Minneapolis that will be razed with $1.25 million of aid from Hennepin County. The aim is to double the number of demolished and boarded properties to 100 this year and give some people hope to the patch of Minnesota most damaged by foreclosures."We need productive properties on the tax base, not shells," said Mike Opat, a Hennepin County commissioner, at the third news conference held on the block in less than five months. He pushed for the $1.25 million in aid the county is providing. The city is required to pay $875,000 back to the county by the end of 2010 for the average collection rate on demolition assessed against the properties and paid by the current or future owner. Full Story: Star Tribune (may require free registration)

Experts called it "one modest, positive step" to help 400,000 homeowners at risk of financial ruin. The measure give some first-time home buyers a better shot at the American dream of owning a home and it may help some stave off financial ruin. But Mark Zandi, chief economist of Moody's Economy.com estimates that there will be 3 million more loan defaults by year's end. Qualified homeowners can seek to have their mortgages canceled and replaced with a 30-year fixed rate, FHA-backed loan and for as much as 90 percent of the home's value. It's up to lenders to decide whether they will participate and which homeowners they will help. Available October 1 though September 2011, the program is designed to benefit borrowers who spend more than 31 percent of their monthly incomes on their mortgages. Full Story: Star Tribune (may require free registration)

Although it is titled the Mortgage Relief Bill, this bill includes a number of other changes that will impact mortgages. It provides more oversight of Fannie Mae and Freddie Mac, increase the loan limits, reduces the sellers contributions and offers relief to thousands of home owners. Full Story: St Paul Pioneer Press (may require free registration)