127,532 New Listings - Last update: November, 08 2009 - 08:11 AM EST
Today Michigan ranks fourth in the foreclosure rankings with filings being more than 15,500. Since 2006 the situation here has been worsening. The economic situation of the state has made matters worse. Since the last two months foreclosures have doubled in Michigan. The Mayor of Dearborn Heights, Paletko fears things will deteriorate in the coming months. Expert opinion is that the crisis will take another 18 months before it peaks. But there the story will not end for by that time so many houses will have piled up to be sold off that it will take several years for the market to stabilize.
The cities of Dearborn and Dearborn Heights in Wayne County ranks fifth in nation wide foreclosure rankings. It accounts for 62% of the total foreclosures in the state with 9,615 foreclosure listings. It ranks the highest amongst the counties in the ratio count with 1:87. This is triple the average of the state and six times more than the national median. As regards foreclosure filings Wayne County ranks second in the nation with a ratio of 1:33. It is calculated to be 149% increase from the third quarter of 2006.
The problem does not end with the foreclosure filings – it just begins with thousands of houses being abandoned. Local leaders are pitching in with state and federal personnel to work out a solution. The programme is aimed to be comprehensive seeing to the needs of all and sundry. As yet nothing concrete has been officially announced but behind the scenes there is hectic activity involving Michigan state, HUD and local groups. Michigan Legislative members are also coming up with plans.
Loans are now being available from Michigan State Housing Development Authority that will enable borrowers to refinance at reasonable fixed rates and escape from the ARM’s. There are certain preconditions – income has to be under $72,250 and the value of the house cannot exceed $216,750. According to another similar plan initiated by Michigan Republicans, loan officers have to register with the State’s concerned department. The backgrounds of those registering would be checked and so too will their activity be scrutinized as regards false advertising and misrepresentation. A “Good Neighbor Program” has been kicked off in conjunction with local officials and HUD. This enabled the city to purchase foreclosed houses from HUD for a nominal fee to pull down dilapidated ones for reconstruction.
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One Response
It’s good to see that some states and more local communities are now taking the foreclosure problem into their own hands and seeking solutions. There doesn’t seem to be much of any program even remotely resembling “help” from the federal government, which should have been expected. It’ll be the homeowners themselves and their local governments that will be able to find real solutions to the foreclosure problem and help these families keep their homes, if possible.