Real Estate Investment: Return on Investment and Cash Flow Calculation

Overall foreclosure filings in Michigan were down 8% in August compared with last year, but that doesn’t mean the worst is over, according to figures released this morning.

national trend as well as foreclosure filings dropped 5% across the country in August from August 2009, according to RealtyTrac, an Irvine, Calif.-based foreclosure Web site.

While default notices, issued at the beginning of the process, fell during August, bank repossessions rose, indicating that lenders and servicers are carefully managing the foreclosure pipeline, said James J. Saccacio, CEO of RealtyTrac.

Michigan ranked eighth nationwide for its foreclosure rate of one foreclosure for every 255 households. The national rate in August was one foreclosure for every 381 households.

Michigan ranked third for the number of filings at 17,764 including 6,114 notices of default, 5,996 notices of sale and 5,654 bank repossessions.

August marked the ninth-straight month that bank repossessions were on the rise nationally and in Michigan, said RealtyTrac spokesman Daren Blomquist.

“The main thing driving the numbers down is the default notices. We think there may be some artificial influence on those numbers because lenders are taking more time to start delinquency proceedings,” Blomquist said.

He said that could be an indication that more struggling homeowners are being directed into programs that avoid foreclosure.

In Michigan, bank repossessions were up by 10% from August 2009, while notices of sale were up 36% and notices of default had fallen by 38%.

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Tags: Detroit, Housing Market Conditions

This entry was posted on Wednesday, September 22nd, 2010 at 6:10 pm and is filed under Housing Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.