Single family foreclosures continued to surge in Michigan in May despite positive developments in the state’s manufacturing sector and despite the allocation of federal funds to help the state address its housing market difficulties.
From its seventh-ranking in April, Michigan moved up to fifth place in foreclosure rate in May as its total foreclosure filings jumped up by 6 percent to 20,322 from 19,173 in April. The number of units that entered home foreclosure listings also increased from 6,252 units in April to 8,009 units in May, a jump of more than 28 percent.
All in all, the total of housing units that were purchased back by lenders through home auctions in Michigan in the first five months of the year was 32,865. Of this total, a huge number were residential units that entered Detroit and Southfield foreclosure auctions. Southfield is a Detroit suburb and part of Greater Detroit.
Analysts said that the spike in multi family and single family foreclosures in Michigan in May resulted from the completion of foreclosure filings that were delayed in the previous months and then completed in May. Michigan has a state law requiring mortgage lenders to give distressed homeowners 90 days to save their homes through the Home Affordable Modification Program.
With this state law, the number of homes posted for trustee sale dropped from 7,644 in April to 7,000 in May, down by 8.4 percent. The number of default notices increased slightly from 5,277 in April to 5,313 in May.
Recently, hopes were raised in Michigan when General Motors increased its investments in its plants in the state and when it announced it had achieved its first quarterly profit in almost three years. GM set aside $700 million for the production of the hybrid car Volt in eight Michigan plants, in addition to its investments for the production of other cars.
With more capital investments and jobs coming from GM and other manufacturing firms, it is hoped that multi family and single family foreclosures in the state will eventually slow down.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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