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3. While 2008 remains on track to be another record-breaking year, current indications suggest the pace of foreclosure increase is slowing—HousingLink's newly updated projection for 2008, which is based on Ql 2008 sheriffs sales counts and a refined projection methodology, indicates that 2008 foreclosures will increase statewide by 39% over 2007's record-breaking level. This projection is based on historical patterns and does not take into consideration the potential impact of remediation efforts, the effect of previously foreclosed homes on the state of the current housing stock, resetting adjustable rate mortgages, changes in mortgage market conditions, variations in home sale prices, or other factors related to changes in the economy. It is lower than a 2008 projection previously published by HousingLink in November 20075. 2008 07-08 2007 Q12008 foreclosures Percent foreclosures foreclosures (projected) Change (Projected) Twin Cities Metro Totals 12,974 4,213 19,936 54% Greater MN Totals 1 7,430 1 2,175 8,346 120X Minnesota Totals 20,404 6,388 28,282 39% 4. Nationally reported foreclosure figures continue to significantly under-report the situation in Minnesota—There continues to be a dramatic difference between the number of foreclosures recorded by HousingLink and RealtyTrac, a national foreclosure data source that is frequently cited in the media.Although RealtyTrac's counts include properties that are in three stages of foreclosure (default, notice of sheriffs sale, and redemption), which should yield a higher number of foreclosures than obtained by HousingLink, its 2007 foreclosure count is nearly 7,000 less. Minnesota Foreclosures Organization 2006 2007 HousingLink 11,207 20,404 RealtyTrac® 5,9956 13,6157 5. All Minnesota counties are now tracking foreclosure counts as of 2008—As of April 2008, all counties were able to provide HousingLink with sheriffs sales counts, which is the measure used in this report to track foreclosures. For 2005, 2006 and 2007, the number of counties that did not report data for this report was 13, 9 and 1, respectively. 5 2008 foreclosure projections previously released by HousingLink predicted a range of 29,000 to 37,000 foreclosures for 2008 and were based on data available as of November 2007.Current 2008 foreclosure projection counts are revised based on data reported for Q1 2008 and recent foreclosure trends. RealtyTrac.See"More Than 1.2 Million Foreclosure Filings Reported in 2006." http://www.reattytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=1855&accnt=64847. 7 RealtyTrac.See"U.S.Foreclosure Activity Increases 75%in 2007." http://www.realtytrac.com/ContentManagement/pressrelease.aspx?Channell D=9&ItemID=3988&accnt=64847 Foreclosures in Minnesota:A Report Based on Sheriff's Sale Data(April 2008) Page 3 HousingLink 612.522.2500