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Milwaukee Pre Foreclosure Homes Still Rising Due to Job Loss

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By : John Cutts    99 or more times read
Pre foreclosure homes in Milwaukee are still rising in number because of continued problems in employment. The unemployment rate in the Milwaukee metro area remained high at an unadjusted rate of 9.6 percent in February, the same as in January but higher than the 8.2-percent jobless rate in February last year.

In February this year, the pace of foreclosures in Milwaukee surged by 12 percent year-over-year, according to officials of the Milwaukee Department of City Development. City records show that over 10,000 foreclosures had been filed in Milwaukee over the past two years.

Additionally, according to a Madison-based research firm, foreclosure filings in southeastern Wisconsin, which includes the counties of Milwaukee, Kenosha, Racine, Washington, Walworth, Ozaukee and Waukesha, increased to 1,046, a jump of about 13 percent from 923 filings in February 2009.

Compared to the previous month, total filings in February this year marked an increase of nearly 5 percent. A total of 996 foreclosures were filed in January in the southeastern portion of Wisconsin.

Despite the year-over-year increase in February, local analysts are encouraged that total filings for the first two months of this year a total of 1,993 filings is about the same as the total filings for the first two months last year a total of 1,987 filings.

According to Russell Kashian, economics professor at the University of Wisconsin-Whitewater, the slowing pace of entry of Milwaukee pre foreclosure homes and foreclosed properties into the market is a sign that the record pace seen over the past two years is diminishing. Nevertheless, Kashian explained that foreclosure activity will only decline significantly if new jobs are created and unemployed homeowners get new sources of income.

Andy Lewis, a community development specialist with the University of Wisconsin, affirmed the important role of employment in the solution of the foreclosure problem. He contended that unemployment is the best predictor for foreclosure because once borrowers lose their sources of income, they do not have the means to make their monthly loan payments and they are without power to keep their homes from getting included in foreclosures lists.

Lewis contended that the number of Milwaukee pre foreclosure homes and repossessed residential units will still rise this year because of the unemployment situation, but the increase will not be in double digits. He added that in addition to the federal foreclosure prevention programs, there are local initiatives available for distressed homeowners.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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