Bank Repos in Michigan Down 42%

The last several years. we've all grown pretty accustomed to bank repossessions. In fact, many of us have experienced them first hand. However, last month (May 2012) bank repossessions in Michigan dropped by 42%, good news for many Michigan homeowners. Repossessions can detract value from surrounding homes and often lower morale in neighborhoods where foreclosures are abundant, creating a repossession shadow that seems to fall over a community like a black storm cloud.

Fortunately, the housing market in Michigan is definitely moving into the silver lining of that cloud as reposessions drop, home sales increase and the values of homes steadily rise. According to a recent article in the Detroit Free Business Press, REO's (real estate owned by banks) in Michigan have declined in 18 out of the past 19 months and foreclosure filings dropped in Michigan by 40% in May of 2012 compared to the same month last year.

Although these findings show improvement, Michigan was by far one of the hardest hit states during the housing crisis and we have a long climb back to the top. According to Daren Blomquist, a spokesman for RealtyTrac, a recovery of the market in Michigan will largely rely upon improvements in the job market and the economy as a whole.

Michigan continues to rank in the top ten for foreclosure rates, with a rate of 1 foreclosure for every 519 households. It comes in behind Georgia, Arizona, Nevada, California, Illinois, Florida and Ohio. But regardless of the numbers, correction is underway and people are slowly, carefully moving back into the realm of home purchasing.

If you want more information about foreclosures or short sales in the Greater Lansing or East Lansing areas in Michigan, please get in touch with me at MyRealtrorRob. As an East Lansing realtor, I can answer any foreclosure questions you have or assist you in the purchase or sale of your home.

Foreclosures Expected to Rise

Despite a decrease in the number of foreclosures in February, foreclosures are expected to rise nationwide in the coming months according to an article published by CNN Money. This is predominantly due to a $26 billion settlement between state attorneys general and 5 big banks concerning foreclosure practices. The agreement sets forth more specific guidelines detailing how foreclosures must be handled, which allows these banks to begin moving forward with foreclosures that have spent months and even years in limbo.

Leading foreclosure cities including Tampa and Miami, Florida have already begun to show an increase in the number of homes entering foreclosure since the new guidelines were established. The state with the highest rate of foreclosure filings is Nevada with 1 in every 278 households filing for foreclosure. California is in second with 1 in every 283 households and Arizona is third with 1 in every 312 households filing for foreclosure.

A 2011 post on Michigan Forward cited Michigan as in the top five states with the highest foreclosure filings. Although this may be appealing to investors in the market for inexpensive homes, foreclosures ultimately hurt those who are foreclosed upon and tend to bring down the values of other homes in the area. The future of the market is still uncertain in most areas, but for first time buyers, foreclosures represent an opportunity to purchase a desirable home at an affordable price.

If you are looking for a home in East Lansing or the Greater Lansing areas of Michigan or would simply like more information about foreclosures, financing and other real estate related issues, please contact me at MyRealtorRob.