The Foreclosure Report

Shocking Rate Of Foreclosure In Michigan

Foreclosure news from Michigan. "The number of homes undergoing foreclosure in Michigan doubled from February 2004 to February 2006. Homes in Michigan are going into foreclosure at a rate that is two-and-a-half times the national rate."

"Katherine Ben-Ami closed on 11 homes a minute Wednesday. If she were the world's fastest real estate agent, that would be good news, but the sad fact is Ben-Ami is an attorney for the Wayne County Sheriff's Office, and in 35 minutes she supervised the auction of 379 foreclosed Wayne County homes. 'Wednesday's always been a big day,' she said, 'but not this big.'"

"For hundreds of people each week, Michigan's sputtering economy literally hits home. After recording more than 9,000 foreclosures in 2005, Wayne County ended January with 3,364 homes in active foreclosure, the highest of any county in the nation by more than 1,000."

"While Wayne County is ground zero, foreclosures are rising throughout Metro Detroit and Michigan. Active foreclosures in Oakland and Macomb counties and the entire state have doubled in the past two years. Lenders, stuck with the homes, lose up to $50,000 per house as they clear them out at below-market prices. That can lower property values in neighborhoods, pushing more homeowners to move out, and eventually hurt property tax collections for local governments."

"'Foreclosure depresses an area in a variety of ways,' said LaSalle Bank chief economist Carl Tannenbaum."

"Taken together, Wayne, Oakland and Macomb counties account for more than half of the state's 8,284 active foreclosures. By itself, Wayne records 40 percent of the state total. 'This is the worst I've ever seen,' said Gary Meyers, a foreclosure specialist who made his first trip to the Wayne County courthouse Wednesday. 'I've been all over the U.S., and the most I've ever seen in a day is 30.'"

"Real estate and mortgage experts say much of Wayne's problem is caused by defaults in Detroit. The city suffers from high taxes and insurance, as well as many fee-laden, high-interest sub-prime mortgages."

"Even with so many foreclosed homes, few actually sell at auction; most end up going back to the lender. In most cases, explained Ben-Ami of the Sheriff's Office, the homes are worth no more than what's due to the bank. At Wednesday's auction, three of the 379 houses brought bids, all for just $1 over the amount owed."

"'Last week, we sold one property to an outside bidder,' Ben-Ami said. 'When they find out what the people owe, they're shocked.' With the auction ended, she helped bundle the foot-high stacks of legal forms to be officially filed. She would return Thursday to watch as another 148 homes went to foreclosure."

posted by Ben Jones @ 1:38 PM