The number of foreclosed properties, including condo foreclosures, declined in Detroit, Michigan, last month. The January 2011 decrease in foreclosure numbers was the second successive monthly decline for the metro area. The January drop followed an almost 30% foreclosure decline recorded in December 2010.
Foreclosures homes in Detroit and foreclosure-related filings declined by 13.9% last month when compared with January 2010. In Macomb County, the year-over-year drop for January 2011 was 6.8%, while Oakland County posted a decrease of over 22%. According to housing industry analysts, the decline in December can be attributed to the moratorium imposed by several major lenders on the processing and selling of distressed properties. However, January figures are not affected by the moratorium anymore, some analysts have asserted.
Meanwhile, statewide foreclosure-related filings and foreclosures for sale in Michigan also dropped last month by 4.88% when compared with January 2010. However, compared with December 2010, the total was up by 4.08%. Local housing analysts stated that statewide December figures were also affected by the moratorium. Concerning January, majority of industry analysts are attributing the lower number of foreclosures for both metro area and state to the foreclosure mitigation programs launched in the region.
According to them, several residential and condo foreclosures have been prevented by programs like the Hardest Hit initiative. They also stated that lenders have been stepping up efforts to negotiate with borrowers before launching a foreclosure action against their properties. Despite this optimistic assessment, some economists stated that foreclosure figures will start rising again in the coming months.
For some, the reason for the decline in the number of foreclosed homes last January was a slowdown in lenders' processing of distressed properties. They stated that majority have learned from the impact of the robo-signing controversy and are now more careful when working on foreclosure cases. They stated that once lenders start hitting their strides, foreclosed property numbers will escalate again in the area.
For majority of housing market analysts, 2011 is the time when the foreclosure crisis will peak. They predict that the total number of residential and condo foreclosures this year will even top last year's figures as the market tries to weed out excess distressed property inventories to start a recovery that will become evident starting next year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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