The foreclosure hit state of Michigan
The state of Michigan is seeing an increasingly large number of foreclosure houses and recorded a rate of one per 455 homes. The total number of filings in February 2007 was 9,287. By the end of the last quarter of 2007, there were 136,205 foreclosure homes for sale reported in the state and 87,210 properties were filed for the percentage change as compared to 2006 was 68.32%. Detroit, once a great city was shattered by the weight of rising foreclosures and to add to its woe is an alarming increase in the rate of unemployment as well as the housing market slump.
In 2007, around 4.9% of the homes in Detroit were in foreclosure, which was 4.8 times higher than the national average. By the end of the year, Detroit made a contribution of 41,273 filings to the existing 72,616 foreclosure homes in Michigan and the Detroit numbers include the foreclosures in Dearborn and Livonia. Some of the other areas in Michigan that took a hard hit include Farmington Hills, Warren and Troy. Apart from this, Washtenaw County also contributed to the existing high rate of foreclosures by state.
One of the primary reasons is the amount of adjustment that the Adjustable rate mortgages have gone through. Most homeowners fall into the ARM trap thinking only about the short-term introductory interest rates and once the rate in reset, the same homeowners fail in making the necessary monthly mortgage payments. The result is notices of default and foreclosure filings. To add salt to their injury is the falling home prices, which has made it even tougher for existing homeowners to sell their homes. Whether 2008 brings down the rate of foreclosure or gives it another spike is yet to be seen.
More Resources:
- Foreclosure Houses
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- New York Forclosure
- Miami Foreclosures
- Foreclosure Homes in Maryland
- Illinois Foreclosure Homes
- Utah Foreclosures
