The Foreclosure Crisis in Minnesota

by Lynette Malles, Poor Peoples' Economic Human Rights Campaign Member

In April, 2008, Minnesota saw 1,405 foreclosures , which was a 68 percent-rise over the same period in 2007, according to a RealtyTrac study. In the first quarter of 2008, Minnesota was hit with 4,231 foreclosures. By August in Minneapolis alone, 950 homes were abandoned, according to Minnesota Public Radio. Such homes were evacuated, locked, and the heat kept on to prevent pipes from freezing.

Related: Video of PPEHRC Valentine's Day Housing Occupation | Baltimore IMC: Activists Break Into, Restore Foreclosed House

The worst of these “nuisances” are being demolished as they are said to “profoundly affect the livability of our neighborhoods," according to Minneapolis’ director of inspections. This statement to me sounds like a Minnesota Nice way of describing people’s FEAR of a drop in THEIR OWN property’s value and FEAR of on-the-edge families moving in next door.

If scandals on Wall Street shock people, why aren’t more people outraged by the elimination of homes during this time of crisis? An increasing number of the homeless are being turned AWAY from filled-to-capacity shelters. It costs tax-payers $28,000 per homeless PERSON per year of support systems, as estimated by Governor Pawlenty’s-launched Heading Home 2010 Minnesota’s Business Plan to End Long-Term Homelessness. Demolition costs an average of $17,000 each. Yet rehabbing one house for a family of four could potentially SAVE tax-payers up to $112,000 per year, provide income for rehabbers, and help to end long-term homelessness! Meanwhile, pipes in abandoned houses remain safe while the homeless freeze.

The Poor People’s Economic Human Rights Campaign (PPEHRC) declares that it’s time to reclaim empty, government-owned, heated homes. The government’s foreclosure prevention plan is likely to funnel federal payments to mortgage companies who would use that money to reduce borrowers’ interest rates and, therefore, their monthly payments. Cheri Honkala, national leader of PPEHRC, was interviewed on the February 18th broadcast of Democracy Now: “We can’t just wait until perhaps some laws are changed in a year or two from now”…”It’s not enough to just try and change things in the halls of Congress”...”people are going to die on the streets because they’re pushed out of their homes.”

This winter PPEHRC is ramping up its long-running Reclamation project of moving homeless families into many of the foreclosed and vacant homes in Minneapolis. As in other cities around the country, especially Philadelphia, PPEHRC members are optimistic that these efforts will be successful. “The police know that there are more important things that they need to be doing,” Cheri figures,” like dealing with murders and drug issues. So unless the police department starts to put officers in front of every abandoned property, we’re OK.”

PPEHRC is also organizing “emergency response teams” as a part of their Underground Railroad project. This involves going into homes of families that are in the final stages of foreclosure and remaining with the residents who are refusing to leave.

Then on March 11th, PPEHRC will begin sit-ins demanding a city moratorium on foreclosures and short sheriff’s sales. PPEHRC contends that homeowners in “blighted neighborhoods” actually are tired of having empty homes next to them that are sometimes used for drug houses. The Underground Railroad and Reclamation projects can help bring neighbors back into the neighborhood rather than throw people out on the streets.