Minnesota Homeowners See ‘Wave Of Foreclosures’ Coming

Some financial experts are sounding the alarm about an increase in foreclosures coming soon. Higher interest rates, increased insurance prices, and other rising costs are causing many to default on their mortgages.

Foreclosures Increase Last 6 Months Of 2025

This last fall, foreclosure filings were up 17% over the previous year. Nationally, foreclosure filings have increased year-over-year for six consecutive months, according to CBS News.

Everything Costs More + It's Adding Up For Homeowners

I can tell you personally that our finances have been tighter than they have been in years, and it's not because we're buying extravagant things. Our property taxes went up significantly, and our insurance rates skyrocketed, making our mortgage payment go up hundreds of dollars in a single year.

Increases in vehicle insurance have put a strain on people, especially in Minnesota, which has seen one of the largest insurance premium increases in the country in recent years.

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Foreclosures Still Below Pre-Pandemic Levels

If there's any good news, it's that the foreclosures aren't at pre-pandemic levels. This doesn't appear to be a wave like the 2008 housing crisis. What's happening is a lot of different factors. Many COVID-19 forbearance practices have ended, causing stress on homeowners who are now forced to make full payments.

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What Do You Do If You Can't Make Your Payments?

First thing you should do is talk to your bank or mortgage company. Explain your circumstances and see if there are any options available. You can also contact a foreclosure prevention advisor for help.