Foreclosure Connections Blog

A large number of homes are already part of the foreclosures in Detroit. A considerable number of families are still in uncomfortable financial conditions, and mortgage payments for these families are an added burden. For some families, keeping up with the payments is turning to be impossible and foreclosure seems imminent.

When a home owner defaults on the mortgage payments continuously over a period of time, he/she is served with a notice to foreclose (by the lender) which mentions that if the debt in question is not fixed within the given amount of time, the home will be auctioned off to take care of the amount that is owed. Upon the notice of foreclosure being served, the home enters pre foreclosure.

If the home owner is unable to cure the default, he/she also has the option to sell the house. If the home owner is able to sell the house during pre foreclosure, and then use the proceeds to pay the lender what is owed on the mortgage, foreclosure proceedings can be stopped. This is the primary reason why a majority of the home owners sell their homes during pre foreclosure.

A short sale is when the lender allows the property to be sold for lesser than what is owed on the mortgage and agreeing to disregard the remaining loan amount (thereby incurring a loss). Lenders generally do this because of the time and money that is involved in going through with the foreclosure proceedings.

In cases where the amount that the borrower (home owner) owes on the mortgage is less, the room for negotiation increases. Since home owners in pre foreclosure do not have the luxury of time, they sometimes end up offers that might otherwise have seemed trivial. Homes in pre foreclosure have been sold for close to half their market values in the past. While deals like these do not come by very often, discounts of up to 20% are quite normal.

If you do intend to buy a pre foreclosure home, make a list of homes that interest you. You can use the internet to look for pre foreclosure homes in Detroit. County courts can also be approached for lists of home owners who have been served with foreclosure notices. Real estate agents usually keep themselves updated with local pre foreclosure listings.

Irrespective of where you find the house from, inspecting the house before you buy it is very important. There are occasions when a seemingly good deal can turn on its head because of the money that needs to be spent in repairs. Treading with caution is the way to go.

Most of the Michigan foreclosure homes have been recorded from the Detroit metropolitan area. Detroit, a growing economy has almost come to a standstill because of the high rate of foreclosures. The trouble is that the metro area is also suffering from a slump in the housing market and increasing unemployment. On top of that there is the reset in housing interest rates, which has made it almost next to impossible for homeowners to pay their monthly mortgage amount.

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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.

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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.

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Detroit is economically troubled due to the woes of the “Big Three” American auto-makers. Its unemployment rate is around 7% but that is actually down significantly than in previous years. This is a typical trend when an economy is transitioning from manufacturing to a general service based economy. However, Detroit is still a great place to find Detroit foreclosure homes that you can make money on.

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The number of Michigan foreclosure homes has been rising steadily over the last couple of years. The state’s mortgage problems have become so widespread that local residents have started to worry about the effects on home prices. Despite the seemingly grim outlook, experts are confident that the Michigan housing market can weather the current conditions. After all, the lows, in-betweens and highs of the market have been reasonable.

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Despite efforts to control the worsening foreclosures situation in the country, the number of foreclosure filings for the first half of 2007 reached an all-time record high. There were a total of 926,000 foreclosure filings, up by 56 percent when compared to last year. In the states of Florida and California, home prices dropped by more or less 25 percent while in Michigan and Ohio, thousands of people in the automotive industry lost their job, further fueling the high foreclosures rate.

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In the month of April the Michigan Foreclosures activity saw a drop of 20%. The total number of house foreclosure filings in the month of April was 6876 which is a 20% drop from the figure in March. The figure is 31% more than the figure reported during the same period last year. Michigan ranked 10th among the US states with one foreclosure filing for every 614 homes. The numbers in April were much better than at the beginning of the year when foreclosure activity had soared by 70%. There has been a steady decline in the Michigan foreclosure figures since then. The foreclosure rate in Michigan was reported at 1.3 times the national average of the United States.

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After two years, foreclosure rates in the United States are still at an all-time high. The reversing trend which began in early 2005 has yet to stop. At the end of 2006, nearly 1.3 million homes were recorded to have entered some stage of foreclosure. The state of Michigan was ranked second among the states with high foreclosure rates. As the year 2007 was ushered in, the rising Michigan foreclosures rate does not show any sign of slowing down.

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