A Spike in Michigan Foreclosures

19 February 2008

Author: admin Posted under Foreclosure homes

There has been a major spike in Michigan foreclosures in 2007 with the county foreclosures hitting 1,029. Some of the major counties that contributed to the high number of Michigan foreclosure homes in 2007 include Livingston, Grand Rapids, Detroit, Lansing, Flint, Pontiac and Clinton among others. The county that has been the worst hit is Livingston County and it seems like there will be many more foreclosed homes in 2008.

Industry experts claim that the main reason responsible for the increasing number of real estate foreclosures is the down state economy of the state. There have been many more layoffs, people have lost their jobs, there has been an increase in the adjustable-rate mortgage interest rates and the nail in the coffin has been driven by the stagnant property values.

In the Livingston County, which has taken the maximum hit with 1,029 bank foreclosures, the number was between 200 and 280 from 2002 to 2006 and just 85 in 2000. Between 2006 and 2007, the number of foreclosures has skyrocketed.

In 2007, most of the homeowners in Michigan saw a spike in the interest rates of their adjustable rate mortgages as they were reset to a higher level. There were many families who had taken a home loan against their equity and these were the families who lost out their homes to Michigan foreclosures.

A top class home in Lafayette Avenue in Grand Rapid, MI is selling for $40,000 especially when the market price is over $60,000. This is what is happening to Michigan foreclosure homes and it seems like the future is bleak because the more number of homes sold at a discounted rate means that it will break the real estate market prices and can lead to a major slump in the economy.