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Despite Surging Detroit Foreclosure Auctions, City Is Loved

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By : John Cutts    99 or more times read
Despite the continued increase in Detroit foreclosure auctions, high rate of unemployment and image problems, a big portion of Detroit residents still love living in the city.

A survey conducted by Intellitrends showed that 50 percent of residents of Detroit and other areas of Southeast Michigan love living where they are and 91 percent of them believe that Southeast Michigan has been portrayed negatively by media practitioners.

Additionally, 51 percent of people who have moved to Detroit said they found what they were looking for and that their expectations were met. A whopping 31 percent even said that what they are experiencing as new residents exceeded their expectations.

With these positive feelings about Detroit, investors planning to buy properties through auctions for sale in the city and then resell them at a profit in a few years would likely achieve their investment goals as there are a lot of people still believing in the ultimate recovery of Detroit.

In the third quarter, the number of residential properties that were repossessed through Detroit foreclosure auctions and properties notified of pre-foreclosures increased year-over-year by 48 percent to a total of 13,192 units.

Similarly, the number of properties taken back by lenders through public home auctions in Michigan and properties notified of pre-foreclosures in the first quarter increased by nearly 11 percent to 45,732 units. Of these units, a total of 18,604 units became bank owned homes.

Foreclosure activity in Michigan continued to surge as job losses forced homeowners to default on their mortgage loans. State and federal foreclosure prevention programs failed to save a huge portion of these borrowers.

In March, the unemployment rate in the Detroit area increased to 15.5 percent, up by two percentage points from the February rate of 15.3 percent and up by 1.2 percentage points from the March 2009 rate of 14.3 percent.

According to the Michigan Department of Energy, Labor and Economic Growth, jobless rates increased in all the 17 major labor markets in Michigan.

As these news items about high unemployment rates and high foreclosure rates dominate news about Detroit and Michigan, survey respondents living outside Michigan are still associating Detroit and Southeast Michigan with the auto industry and music. On the negative side, a big portion of respondents also associated the area to issues like crime.

On the whole, real estate investors and home buyers planning to profit from properties listed for Detroit foreclosure auctions are right on track, as there are still a lot of people confident about the recovery of Detroit.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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