Michigan Foreclosed Homes for Sale - increase 3.24%

August 13th, 2009 | Tags: Foreclosed Homes

Michigan is one of many states that saw an increase in the foreclosure home rate between the months of May and July of this year. In a time when the federal government is telling us that the stimulus package to help curb the growing rates of foreclosures the state saw a fairly significant increase in those very same numbers.

A good portion of these increased foreclosures in the state of Michigan can be attributed to the trouble that the big automakers in Detroit are having. As the jobs are lost and people begin looking at options then the first thing that they can reasonably let go more often than not is the house because they can always rent.

This is a scenario that is being played out across the state. The auto industry employed many people not only directly in the factories but also indirectly in the supporting industries that make the parts and components that are needed to assemble the vehicles. If they are cutting down the manufacture then there is not much need to have the other parts and the domino effect begins.

The effect has been worse here than in some states because of the dependence on the jobs the “big three” which are headquartered in and around the city of Detroit. Every indication is that the foreclosure numbers here will continue to climb until the auto industry has finished the restructuring that is currently taking place in the companies.

There were relatively few indicators in the state of Michigan that would lead the forecasters to the conclusion that there is any good news coming in the immediate future as far as the foreclosure numbers. The numbers, while less than expected are still steeper than the residents of the area were hoping for and the home values will feel the effects of the increase.