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foreclosure

Photo by Steve Carmody/Michigan Radio

Things continue to look bad for the Midwest housing market. Seven of the lowest performing major markets in the nation are from the Midwest and Detroit leads the pack. Sean McSweeney is with Clear Capital, a national real estate valuation company. McSweeney says while Detroit faces many challenges, there are still reasons Detroit home owners should be hopeful. 

Steve Carmody / Michigan Radio

The number of home foreclosures in Michigan inched higher last month. One in every 311 homes in Michigan received a foreclosure noticed in March. The number of foreclosures was up about 4 percent from February.

Michigan had the nation’s fifth highest home foreclosure rate in March, behind Nevada, Arizona, California and Utah.     

Daren Bloomquist with Realty Trac says mortgage holders are starting to send more initial foreclosure notices and repossess more homes in Michigan. Bloomquist says an improving economy is the only way to reduce future foreclosure notices in Michigan. 

 “The more the economy improves and jobs improve during the next couple months the less we’ll see that huge spike in foreclosure numbers down the road.”  

While March’s foreclosure numbers rose slightly, overall Michigan’s home foreclosure numbers declined during the first three months of the year.

(photo by Steve Carmody/Michigan Radio)

Detroit home prices continue to slump. New data from Clear Capital show the average sale price in the first three months of the year for a home in Detroit was roughly 60,000 dollars. 

Alex Villacorta is an analyst with Clear Capital. He says foreclosed homes continue to clog Detroit’s housing market, depressing sale prices. 

“Once those saturation rates come down I do think you’ll see prices start to stabilize a little bit.   Even if the overall health improves we’ll see may a more sustained price growth looking forward.”

Home sale prices held steady in most of the nation in the first quarter of 2011, except in the western U.S. where home sale prices fell to levels not seen since 2001.

(photo by Steve Carmody/Michigan Radio)

County treasurer offices across Michigan this week are processing thousands of homes that have fallen into tax foreclosure. Michigan property owners has until last week to pay up their 2008 property taxes or face losing the property to tax foreclosure. Many counties were expecting about a 10% increase in homes falling into tax foreclosure. 

In Genesee County, the owners of 2,999 properties missed the deadline. About 600 more than last year. Deb Cherry is the Genesee County Treasurer. She was not surprised by the jump in tax foreclosures. 

 “A lot of it has to do with the fact that 2008 was one of the worst years in the housing market.”

Cherry does not expect there will be many buyers when these homes go up for sale later this year.

Many of the properties will find their way to the Genesee County Land Bank, which is already taking care of more than 6,000 properties. Douglas Weiland is the land bank authority executive director.

"Its not a question of whether we can absorb more properties, we will absorb more properties and we expect we'll see that trend continueing for some time yet."

Detroit posted the biggest percentage drop in home prices in the nation, according to a new report. Clear Capitol says home prices in Michigan’s largest home market slide 13% in February, more than any other major city.

Alex Villacorta  is Clear Capitol’s director of research.   He says home prices in Detroit are being dragged down by banks trying to sell foreclosed homes.    Bank owned homes usually sell at well below market prices.

Foreclosure filings in Michigan have fallen to levels not seen since 2008.   Realty Trac reports foreclosure filings dropped by 30 percent in February compared to a year ago. 

Daren Bloomquist is with Realty Trac.  He says mortgage lenders are finding it difficult to get home foreclosures started, since last fall’s scandal involving incorrect paperwork forcing people out of their homes.  New rules require more safeguards in preparing a foreclosure filing.  But Bloomquist says this is only delaying the inevitable for many delinquent home owners.

  “What hasn’t gone away is there are still a lot of properties that eventually we people will be foreclosed on.  That’s really the only solution for some of these situations.”  

Bloomquist says the slowed foreclosure process might help reduce the number of bank owned homes on the real estate market.   The high number of foreclosed homes on the market is blamed for causing depressed home sale prices.

Fewer homebuyers were interested in buying a previously foreclosed home in Michigan last year. The result is an increasingly high number of bank-owned homes just sitting on the real estate market.  

Just under 41 thousand formerly foreclosed homes sold last year in Michigan.  That’s down by a third compared to 2009 and 2008.  The prices paid for those homes also dropped.

User thinkpanama / Flickr

Nationwide and in Michigan the rate of foreclosures has slowed a bit in recent months.  But Realty Trac experts say that’s less a sign of a robust housing recovery and more a sign that lenders have become bogged down.  They’re reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing, the so-called robo-signing scandal.

(photo by Steve Carmody/Michigan Radio)

Analysts expected a big jump in home foreclosures in Michigan in January.  But the jump didn’t materialize.

 Home foreclosures slowed last fall in Michigan and around the country as banks dealt with a scandal about robo-signings.   Essentially mortgage lenders signing foreclosure documents without checking to make sure what they were signing was accurate or truthful.  Foreclosures were expected to spike this month.  But they didn’t.  Realty Trac reports Michigan saw only a 4% increase in foreclosure filings in January.   Nationally only a one  percent increase.

Lindsey Smith / Michigan Radio

Holland and Grand Rapids’ Public Schools are both closed because the sidewalks aren’t shoveled enough yet to send kids to school safely.

No Michigan housing markets rank among the 25 worst for home foreclosures in a new national survey.    But, that may change by the end of this year.  

John Eisenschenk / creative commons

One of the biggest office buildings in Grand Rapids sold for $34 million at a public foreclosure auction today. The 17-story blue-glass Bridgewater Place building dramatically changed the city’s skyline when it was built in the early 1990s.

Many people refer to the building as the Varnum building, because of the law firms’ prominent logo near the top floor.

(photo by Steve Carmody/Michigan Radio)

2010 was the worst year in a decade for home foreclosures in Michigan, according to new data out today.   And 2011 is expected to be worse.  

One in 33.    That’s how many Michigan homes received a foreclosure notice in 2010.   

 Realty Trac ranks Michigan as having the 7th worst home foreclosure rate in the nation last year. Daren Bloomquist is with Realty Trac.    He says Michigan’s foreclosure numbers should be worse this year. 

Grand Rapids skyline
John Eisenschenk / Creative Commons

One of the biggest office buildings in Grand Rapids is listed for sale at a public foreclosure auction next month. The 17-story sleek blue-glass Bridgewater Place dramatically changed the city’s skyline when it was built in the early 90s. Many people refer to the building as the Varnum building, because of the law firms’ prominent logo near the top floor. Varnun rents the tops 6 floors.

Michigan home prices keep falling
Steve Carmody / Michigan Radio

Michigan’s home prices are expected to tumble again next year.

 But, some parts of the state might see a slight increase in price.

 Home sale prices in Michigan rocked up and down this year. Government incentives helped boost prices in the first half of the year. When those incentives expired, prices dropped.

Alex Villacorta is with Clear Capitol. He says home prices in Michigan should get a boost in the Spring, but then should fall at the end of the year. 

Foreclosed house
Damon Duncan / Flickr

Foreclosure filings in Michigan fell 20% between October and November, but most of the decline came in homes in the final stages of foreclosure according to data released by Realty Trac, a group that calls itself "the nation's leading online foreclosure marketplace."

The pace of homes entering the system remained relatively unchanged.

Michigan home prices continue their downward slide and the trend shows little sign of stopping.

Home prices in Michigan declined about 9% in the third quarter, a downward trend that started in April as government buying incentives began to dry up.

Fewer people bought formerly foreclosed homes in Michigan in the third quarter of the year. 

Federal home buyer tax credits spurred home sales in Michigan and the rest of the country during the first half of the year.  Daren Bloomquist with Realty Trac says July through September home sales slumped without those incentives.  He says Michigan’s foreclosed home sales dipped 26%.

Bloomquist says:

Some of the sales you would have seen in the third quarter were pushed forward to the second quarter.  So, there was a little artificial inflation in those numbers. These numbers in the third quarter are a little bit lower than normal.

People who bought one of the 95 hundred formerly foreclosed homes that sold in Michigan in the third quarter of the year got a good deal.  The average sale price was about 41% cheaper than similar homes sold at the same time.

Knight, Tom
Gerry Leslie / Homeless Management Information Systems

In 2008, the state estimates there were a little more than 86,000 people without a home. Half of them were families.

BasicGov / Flickr - http://bit.ly/1rFrzRK

Michigan’s home foreclosure rate has stabilized, but is still much higher than the national rate. One out of every 98 homes in the state is in the foreclosure process.

Daren Bloomquist is a spokeman for RealtyTrac, a company that tracks foreclosures.

“In Michigan I would say the number one issue is unemployment. It's still there and so that's still pushing people into foreclosure. Until we solve that problem, you're still going to see an elevated level of foreclosures in Michigan," Bloomquist said.

Building a knee wall in an attic
Rebecca Williams / Michigan Radio's The Environment Report

Habitat for Humanity says it's saving money by fixing up foreclosure in Michigan, rather than building new. The Environment Report's Rebecca Williams visited volunteers working on rehabbing a house in Ypsilanti Township. Megan Rogers with Habitat says rehabbing foreclosures costs about 1/3 less than building new, but it can be a bit more challenging:

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