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Foreclosure assistance modified (new law)

Published (5/30/2008)
By Craig Green
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Those trying to avoid foreclosure on their home can apply for aid from the Minnesota Housing Finance Agency’s Foreclosure Prevention Assistance Program.

Awards, however, have been capped at $5,500.

In response to the ongoing foreclosure crisis, a new law ties the cap to a fluctuating indicator — 110 percent of the median cost of owner-occupied housing multiplied by six. This would mean a Twin Cities metropolitan area homeowner would have a cap of $10,718, and $9,478 to homeowners in Greater Minnesota. The cap was last adjusted in 2001.

Sponsored by Rep. Jim Davnie (DFL-Mpls) and Sen. Linda Higgins (DFL-Mpls), the law is effective May 28, 2008.


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