Michigan 6th in Ranking of Foreclosures by State

With 12,564 foreclosure filings in February, Michigan maintained its 6th ranking in RealtyTrac’s chart of foreclosures by state. Michigan was also 6th in foreclosures by state rankings in 2008 and in January.

Compared to the national rate of one housing unit in every 440 units being foreclosed in February, Michigan had one housing unit in every 360 being foreclosed. Foreclosure filings in Michigan in February also increased by 10 percent from January and by 14.7 percent from February of last year. These figures put Michigan among the top ten in foreclosures by state rankings. Nationwide, foreclosure filings increased by 30 percent from the February 2008 count of 290,631 foreclosed properties.

Included in Michigan’s February filings are 7,838 sales notices and 4,726 mortgage bank repossessions. The one bright point in Michigan’s foreclosures by state data is the decline in metropolitan Detroit’s ranking in foreclosure rates. According to RealtyTrac spokesperson Daren Blomquist, from its number one ranking in 2007, Detroit has gone down to 30th in a ranking of 203 metro areas in terms of foreclosure rates in February.

The other bright point in the February foreclosures by state data is Michigan’s not reaching the 14,500 level it surpassed in May 2008 and in November of the same year. Michigan had 14,579 filings in May 2008 and had 14,594 filings in November.

Although RealtyTrac’s CEO James Saccacio was surprised at the increase of Michigan’s foreclosures by state February data when compared to January data, he was relieved that the February figures are sending positive signs when compared to peaks in the 2008 foreclosures by state data. Among the probable factors for the decrease from peaks are the foreclosure moratoriums given by lenders and by Freddie Mac and Fannie Mae.

It is expected that the foreclosure moratoriums and President Barack Obama’s House Affordable foreclosure prevention initiatives will reduce foreclosures. However, according to Blomquist, these will not completely eliminate foreclosures. He cited the Mortgage Bankers Association’s data on delinquencies for the 4th quarter, which are at their highest levels.

In Michigan, more than 11 percent of 1.48 million mortgage loans were past due but not yet notified for foreclosure. Blomquist said if Obama’s program catches these delinquent but not yet foreclosure-notified borrowers, the program will be able to fulfill its goal of mitigating foreclosures.

By Cassiano Travareli