Minnesota Luxury Home Foreclosures

Click this link to browse Minnesota luxury home foreclosures!

When we hear the word “foreclosure,” we may think of boarded up homes in bad neighborhoods, “no trespassing” signs, and perhaps some freeze damage thrown in for good effect.  Also, we tend to think that Minneapolis foreclosures are all found in the 200k or less price range.  While it is true that there are plenty of lender mediated properties in lower price ranges, there are a handful of upscale (1M+) Minnesota luxury home foreclosures available.  The good news is that many of them are in excellent condtion, and frequently they boast all of the vintage architectural details like lead-camed glass, oak pillars, and oak-tread stairways. Several of them boast prime Minnesota shoreline along Lake Minnetonka, in upscale neighborhoods of Orono and Minnetrista.

How did these properties end up in foreclosure?  Well, many of the Minnesota luxury home owners defaulted on their mortgages for the same reasons as everyone else, and in many cases, a risky mortgage product was a culprit. Also, many of these homes were purchased via “no-doc” or “liar loans” as mortgage officers facetiously call them.  Many of these homes were financed on the basis of unsubstantiated information, and the borrowers may have been a greater risk than what lenders were led to believe.  Also, the credit crisis made it difficult to obtain jumbo financing, as rates were higher than conventional mortgages and underwriting standards became tough.

Fortunately, the credit crunch for the Minnesota luxury home market  has eased up considerably, and jumbo financing rates are coming down to approach those of conventional programs. Combine this trend with the prevailing low real estate prices, and you have an ideal opportunity to own a luxury home that may have previously been out of your reach.  While it is a myth that you can buy Minneapolis luxury home foreclosures for pennies on the dollar, you still can find savings and value.

Foreclosed Minnesota Luxury Homes for Sale

At the time of this post, there were only ten listings priced over 1M on the Northstar Regional MLS/IDX feed.  Keep in mind that not all mls listings are posted on the idx system, and that we may be able to find others that are available in your area.  Also, this number may not reflect “pre-foreclosure” listings that are NOT short sale situations because there is a fair amount of equity.  Also it does not include homes that may have been listed at $1M or higher, but have recently had price reductions below that mark.  If you would like more comprehensive information about distressed luxury properties, please contact us.

Possibly related posts:

1. Minnesota Foreclosure Process
2. Twin Cities MN Home Sales Trends