Michigan Foreclosures rose sky high in 2007
Who could have thought that the beautiful state of Michigan with its heart in Detroit will reel under the pressure of foreclosure houses? Yes! The truth is that Michigan has not been spared by the foreclosure storm, which seems to have gripped big and small states, cities and counties in its suffocating noose. The Counties at the top of the foreclosure list are the Livingston and Washtenaw counties. Due to the high number of tax foreclosure homes in both the counties in 2007, the overall economy of Michigan has been badly hit. Not only this, there has also been an increase in outstanding as far as mortgage payments are concerned.
The Livingston and Washtenaw counties combined saw 2,180 foreclosed homes sold through a sheriff’s auction in 2007, which is a jump of 90% since 2006. According to the treasurer at the Washtenaw County, Catherine McClary, foreclosures in Washtenaw have not yet reached the top of the bell curve. According to her the county saw almost 2,200 foreclosures by state in foreclosure in 2007 and might see many more in 2008.
The rise in Michigan foreclosures is being seen largely due to the increase in the resets of adjustable rate mortgages. Adjustable rate mortgages mostly work on the philosophy that in the introductory period, which can be of two years, the rates will be quite low but after this period, the rates will start to adjust and increase. The year 2007 saw a record number of resets in the ARM rates and as a result of this, the amount of monthly mortgage payments also increased and there were many homeowners who were caught in the trap.
More Resources:
- Homes in Foreclosure
- Pennsylvania Foreclosures
- Maryland Foreclosures
- Colorado Foreclosure Homes
- Orlando Foreclosures
- Houston Foreclosure Homes
