FSBO Properties Set to Decline As Loan Delinquency Drops in Michigan- By: John Cutts
Third quarter housing data showed that Michigan's loan delinquency rate has declined compared with the previous quarter, leading housing market analysts to predict that the number of foreclosed real estate and FSBO properties will also decline in the coming months. According to them, fewer homeowners will be in that situation where they consider selling their home as the only way to save it.
The number of Detroit foreclosure houses, MI and distressed properties all around the state is expected to ease down in the coming months until the early part of next year as the state's delinquency level declined by 16 basis points to 11.25% in the July-September 2010 period compared with the April-June 2010 quarter, according to data presented by the Mortgage Bankers Association.
The total number of foreclosure houses in Michigan made the state the fourth ranked region in the U.S. in terms of rates of foreclosure for the 2010 third quarter. The area also ranked fourth nationwide in terms of foreclosures initiated during the current year's third quarter, with foreclosure starts level jumping to 1.65%, representing a rise of 26 basis points compared with the previous three-month period.
With fewer people in danger of getting foreclosed, housing analysts expect short sales and FSBO properties to also diminish as more homeowners find some form of stability in the home ownership market. Analysts have stated that the main reason for the loan delinquency decline was the willingness of most banks to offer mortgage modifications to borrowers.
Despite the positive development, housing analysts have warned that there is no way of telling whether the data for the third quarter signals a long-term market trend. They stated that until the impact of the temporary halt in the sale of foreclosed houses implemented by lenders all over the U.S. is sorted out, there is no way of finding out the actual delinquency rate for the last quarter of the year. They further added that, although delinquency rate is lower, it remains above the desirable level.
Analysts have also emphasized the effect of unemployment on the condition of the country's housing market. According to them, the more people lose their jobs, the more likely that foreclosure, delinquencies and FSBO properties will continue to rise in most areas of the U.S.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.