The Grande Market Square in Burnsville has gone into foreclosure.
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Though nearly 40 percent of Twin Cities mortgages were underwater, that number is falling.
The program includes $15,000 in down payment assistance to urban borrowers who will live in their houses for five years.
By several measures, July was a strong month for real estate in the Twin Cities. Prices were up 14.3 percent from a year earlier.
The decline in home prices hasn't helped Minnesota renters
The number of homeowners who are in danger of losing their houses has increased by 11 percent, RealtyTrac said.