home foreclosure

Steve Carmody/Michigan Radio

Detroit’s home foreclosure rates are dropping.

Realty Trac reports Detroit now has the 39th highest home foreclosure rate in the country. That's a big change from a few years ago, when Detroit routinely ranked in the top ten.

In September,  Detroit’s home foreclosure rate was at its lowest point since September, 2006. 

Daren Bloomquist is with Realty Trac.    He says Detroit’s foreclosure numbers are improving, but he says more than half of Wayne County homeowners are ‘underwater” on their mortgages.

Sarah Cwiek / Michigan Radio

The American Civil Liberties Union, the National Consumer Law Center and others have sued investment bank giant Morgan Stanley on behalf of five black Detroit homeowners.

Steve Carmody/Michigan Radio

Michigan’s falling home foreclosure rate reached a milestone last month. 

But one analyst expects the second half of the year will see an uptick in homes being repossessed by banks.

(photo by Steve Carmody/Michigan Radio)

Realty Trac is reporting today that Michigan’s home foreclosure rate is improving.

Foreclosure filings were down nearly 20% during the first three months of the year compared to the fourth quarter of 2011. The decline was even steeper compared to the same time a year ago.

Daren Bloomquist is with Realty Trac. He says nationally foreclosure numbers haven’t looked this good since before the recession started in 2008.

“I definitely think in Michigan…we’re passed the worst of this foreclosure problem… we’re on the downward slope," says Bloomquist, "But there’s just a few bumps I the road going forward before we completely… are out of the woods in terms of foreclosure in Michigan.”

Bloomquist expects there will be a spike in new home foreclosures in the second half of the year.

user brother o'mara / Flickr

Detroit leaders not consenting to Snyder's consent decree plan

On Tuesday, Gov. Snyder and state treasurer Andy Dillon put forward a plan to rescue Detroit's finances. Almost immediately the plan was rejected by city leaders. They said the proposed plan would strip them of their power. "Why the hell would I sign it?" Bing said when appearing before a group of students yesterday.

More from the Detroit Free Press:

Bing, Snyder, council members and Detroit ministers took to the airwaves and podiums Wednesday, keeping Tuesday's dust from settling.

Bing, in an uncharacteristically combative tone, said the state's proposed consent agreement to fix the city's deficit is unconstitutional and will undermine progress being made by his administration.

Snyder described the criticism as "unfortunate."

Both men defended their positions Wednesday, and at times, both seemed disappointed, frustrated and irritated.

The Free Press reports Bing and city council leaders are working on a counter-proposal.

Gov. Snyder and Lt. Gov. Brian Calley plan to hold a press event at 10 a.m. this morning "to discuss Detroit’s critical financial situation."

Gov. Snyder's higher education plan criticized by university presidents

Four university presidents testified in front of members of the State House Appropriations Subcommittee on Higher Education yesterday. They were critical of Gov. Snyder's plan for higher education funding. Snyder's budget proposal calls for increases in state support if universities meet certain goals.

University of Michigan President Mary Sue Coleman said Snyder's proposal is not a fair measurement of success. From MLive.com:

“By all accounts, the University of Michigan is a world-class institution of higher education,” she said. “Yet, in the budget proposal that has been recommended, you could erroneously come to conclude that based on the performance measures that were evaluated; the university is a failing institution.”

Part of Gov. Snyder's proposal rewards universities for keeping tuition rates down. Grand Valley State University President Thomas Haas said tuition rates are highly dependent on state aid. From the Detroit Free Press:

"It is a fact that the single greatest impact on tuition and debt is the presence or absence of state appropriation," Haas said. "If the state had been able to avoid cuts in the past decade, our tuition could be $6,000 a year instead of $9,000. If the state had been able to maintain the 75/25 ratio of long ago, our tuition could be just $3,000 a year, a number well within reach of nearly every qualified student."

Michigan's home foreclosure rate declining

It's good news for a state that has been battered by the economic downturn. Michigan Radio's Steve Carmody reports today "one in every 433 Michigan homes had a foreclosure notice filed against it in February." That's down 25 percent when compared to February a year ago.

The better statewide numbers are mirrored in the Detroit market (down 17 percent from January-down 27 percent from February, 2011), which has long been the epicenter of Michigan’s foreclosure problems.

The nationwide home foreclosure rate declined by 8 percent when comparing February 2012 to February 2011.

(photo by Steve Carmody/Michigan Radio)

Michigan’s home foreclosure rate continued to fall in February.

Realty Trac reports today that one in every 433 Michigan homes had a foreclosure notice filed against it in February.

That was an improvement over January (down 18%) and a big improvement compared to February a year ago (down 25%).

The better statewide numbers are mirrored in the Detroit market (down 17% from January-down 27% from February, 2011), which has long been the epicenter of Michigan’s foreclosure problems.

(photo by Steve Carmody/Michigan Radio)

A surge in so-called ‘short sales’ is helping reduce the number of Michigan home falling into foreclosure.

It’s a trend that may eventually help Michigan’s struggling real estate industry.

Pre-foreclosure sales, also known as ‘short sales’,  are where banks agree to sell a home for less than what’s owed on its mortgage. 

Home foreclosure filings in Michigan continued to slide last month.   

Realty Trac reports one in every 354 Michigan homes were in the foreclosure process in January.     That’s a 23% improvement over January, 2011.

Daren Bloomquist is with Realty Trac.   He’s been expecting Michigan’s foreclosure numbers to get worse for more than a year, but instead the numbers have been getting better each of the last 15 months.

“You can’t complain about that trend," says Bloomquist,  "we’re headed in the right direction.”

Michigan says it expects to get $790 million as part of a landmark $25 billion settlement with the nation's top mortgage lenders.

The office of Michigan's attorney general announced Thursday that the estimate is up from the about $500 million it said Tuesday was expected for joining the settlement. The deal was reached over foreclosure abuses that occurred after the housing bubble burst.

Officials say 49 states joined the settlement with five of the nation's biggest lenders. The deal will reduce loans for a fraction of those Americans who owe more than their homes are worth. It will also send checks to others who were improperly foreclosed upon.

(photo by Steve Carmody/Michigan Radio)

Home foreclosures in Michigan are expected to increase in 2012.    

The pace of foreclosure filings slowed in 2011 as mortgage lenders had to deal with new rules and lawsuits.    

Daren Bloomquist is with RealtyTrac. He said most of the issues that slowed the rate of foreclosure filings have now been dealt with. But Bloomquist said there’s always the chance that new obstacles will arise.  

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