Economy
10:17 am
Thu April 10, 2014

Home foreclosures falling in Michigan, but many are not leaving their former homes

The number of homes in Michigan in foreclosure has dropped to its lowest level since 2005.

Foreclosure filings in Michigan have been steadily declining for the past three and a half years.

In Michigan, about 40% of foreclosed homes are still occupied by their former owners or tenants.
Credit Steve Carmody / Michigan Radio

Daren Bloomquist is with Realty Trac. He says banks are now dealing with the problem of getting former owners or tenants to move out of their foreclosed homes.

“One of the questions we get a lot is ‘why (are) these properties not selling?’” says Bloomquist. “One of the major answers to that is because the former occupants are still living there … nationwide 50% of the time.”

Bloomquist says in Michigan about 40% of foreclosed homes are still occupied by their former owners.

He says that contributes to the average 342 days it takes a bank to sell a foreclosed home in Michigan.