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Michigan Hit by Residential Foreclosure Homes for Sale and Job Losses

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By : John Cutts    99 or more times read
Residential foreclosure homes for sale remain a problem in Michigan but it is not the only factor that is pulling the state's economy down, analysts have stated. The region's high unemployment rate is also playing a major role in creating a sluggish economic outlook for the area, analysts have revealed.

According to economists, the continuous rise in the number of Warren foreclosed homes, MI and distressed dwellings in other parts of the state is being made worse by the huge number of unemployed people, with most of them holding mortgages which they are not able to pay due to loss of job.

According to the U.S. Department of Labor, the state is second overall in terms of unemployment with a rate of 13%. This inevitably adds to the number of Michigan foreclosed houses as homeowners who have lost their jobs fail to cope with their monthly loan obligations. In the whole U.S., only Nevada has a higher unemployment rate than Michigan.

Economists are making the connection between the number ofresidential foreclosure homes for sale and unemployment rates, as three of the top five states with the highest number of job losses also have the highest rates of foreclosures. California has an unemployment rate of 12.4% which makes it third overall, while Florida has 11.9% at fourth place. The top five is rounded up by Rhode Island which has an 11.5% unemployment rate.

The number of foreclosed home sales in Michigan is expected to increase further in the coming months as September job market statistics showed that the state has lost around 13,000 jobs. Although the region has recorded a 0.1 decrease in unemployment percentage point, economists have stated that this could have been caused by more people who have decided to stop looking for jobs.

For the past four years prior to May 2010, Michigan has held the top position among 50 U.S. states in terms of unemployment rate. However, job market figures released last May saw Nevada getting ahead of Michigan with a 14% unemployment rate as opposed to Michigan's 13.6%.

According to most economists, the economic recovery of Michigan and the whole U.S. will be greatly affected by the temporary moratorium on Residential foreclosure homes for sale and will likely result in the absence of any improvement in the nationwide economy.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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