Minnesota’s mortgage meltdown

How bad is the mortgage foreclosure and delinquency problem here? Bad, but not as bad as the rest of the country, according to a report released Thursday by the Mortgage Bankers Association.

In the West North Central area — Minnesota, Iowa, Kansas, Nebraska, Missouri, and the Dakotas — 6.7% of all mortgages were past due in the last quarter of 2008, that’s the lowest of all the geographical regions. Six percent of mortgages in Minnesota were past due. Just 3 percent of mortgages here were in foreclosure.

Nationally, almost 8 percent of mortgages were past due.

But the situation gets much worse for subprime mortgages — the mortgages given primarily to people with low credit ratings. Twenty percent of those mortgages in Minnesota were past due in the 4th quarter; 15 percent were in foreclosure.

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