Saturday, September 24, 2022

Play

The health-care subsidy extension a relief for small businesses; Consumer groups press for a bill to reform credit reporting; and an international group aims to transform how people view peace and conflict.

Play

Condemnation of Russian war on Ukraine continues at the U.N, House Speaker Nancy Pelosi says there's need for worker training to rebuild Puerto Rico, the House takes on record corporate profits while consumers struggle with inflation.

Play

The Old Farmer's Almanac predicts two winters across the U.S., the Inflation Reduction Act could level the playing field for rural electric co-ops, and pharmacies are dwindling in rural America.

Gauging Inflation's Impact on Foreclosure Activity in MN, U.S.

Play

Wednesday, August 10, 2022   

In the first six months of this year, the U.S. saw a significant jump in foreclosure filings, coinciding with concerns about the pressure inflation is putting on homeowners.

A national tracking firm recently reported nearly 165,000 U.S. properties with foreclosure filings, more than double the same time last year. The uptick follows the expiration of pandemic moratoriums and forbearance programs, but analysts say spikes in consumer costs are not helping.

Joe Mahon, regional outreach director for the Federal Reserve Bank of Minneapolis, said it affects borrowers in different ways.

"It causes people to cut back on the more discretionary parts of their budget," Mahon observed. "If you're low income, you don't necessarily have a lot of discretionary spending, so there's not necessarily a lot of room to cut."

Mahon pointed out even though wages have been rising sharply, they have not kept up with inflation, hurting a person's chances to get caught up on budget concerns, such as overdue payments.

Around the state, the Minnesota Homeownership Center has partnerships with nearly 20 organizations offering free financial counseling to avoid foreclosure.

While gas prices have been trending downward, Mahon noted they are still higher than they were a year ago and homeowners might also be reeling from other energy price hikes, including natural gas and the cost of heating their home.

"Unless we see a dramatic reversal in natural gas and heating oil prices, expect higher heating costs this winter, as well," Mahon cautioned. "That's one of those things that you can only trim your spending on that so much."

As for foreclosure filings, Minnesota is in the middle pack among states for the first half of 2022, during which the real estate data company ATTOM said more than 2,100 properties around the state were in foreclosure.

Disclosure: The Minnesota Homeownership Center contributes to our fund for reporting on Civic Engagement, Housing/Homelessness, Livable Wages/Working Families, and Poverty Issues. If you would like to help support news in the public interest, click here.


get more stories like this via email
Nonprofit organizations employed nearly 30,000 Montanans in 2019. (Artur/Adobe Stock)

Social Issues

The work of some nonprofit organizations has only increased with the pandemic and the needs that have come from it. An author and expert in the field …


Social Issues

Hispanic Heritage Month began in mid-September and runs through Oct. 15, and a financial institution in Washington state is finding unique ways to …

Environment

Conservation groups say more needs to be done to protect the natural and cultural resources of Utah's Labyrinth Canyon from off-road vehicles…


Social Issues

Consumer groups are pressing for legislation to reform the way credit agencies handle errors on credit reports. The calls to amend the Fair Credit …

The Biden administration is working on new nationwide regulations for methane gas emissions from oil and gas sites. (Leonid Ikan/Adobe Stock)

Environment

A relatively small number of so-called "super emitters" are responsible for 40% of the methane emissions in oil and gas hotspots such as California's …

Social Issues

As "Banned Books Week" comes to a close, Connecticut libraries have been celebrating with great fervor - despite numerous book bans and challenges…

Social Issues

Average Affordable Care Act premiums in Wisconsin would have been 56% higher this year without temporary subsidies from the federal government…

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright 2021