The Foreclosure Report

Michigan Defaults An 'Epidemic'

This report out of Michigan reveals that state is having serious problems. "Job losses, lagging home values and more relaxed lending rules have contributed to the state's mortgage delinquency and foreclosure rates, which are higher than the national average."

"The nation rebounded from an all-time high foreclosure rate in 2002. But Michigan continues to experience some of the highest levels of foreclosures in the country. As of Sept. 1, 40,110 Michigan families were seriously delinquent on their mortgages or in foreclosure."

"Nationally, about 1.8 percent of surveyed loans were seriously delinquent or in foreclosure in the second quarter of 2005. But in Michigan, 2.8 percent of the mortgages surveyed were seriously delinquent or in foreclosure.

"Relaxed lending rules and creative financing have overextended homeowners, who often are able to buy more house than they can afford later. Amid a weak Michigan economy, lagging home values prevent homeowners with second mortgages or home equity loans from selling their way out of foreclosure."

"'Foreclosures are hitting people at all walks of life here,' said (realtor) Marjorie Whetstine in Northville. 'It really is becoming an epidemic.' Only Texas, Georgia and Ohio have higher foreclosure rates than Michigan."

posted by Ben Jones @ 11:04 AM