Michigan Foreclosure Report by Mark Ijlal

Greta Guest has the following story at Free Press this morning. No surprises here. I had a very interesting conversation with a REO realtor in Pontiac yesterday regarding this.

I might do a teleseminar on this next week on what you as a real estate investor in Michigan need to be doing right now to get some really big discounts from banks as they are getting "more inventory". I have been saying this for two years now that this is going to be foreclosure boom to end all booms and now it is starting.

Yeah! this is not the middle nor the end - just the beginning. If you have friends in the mortgage industry - ask them how banks are treating bad / bruised credit applications right now? It is about to get very very crazy out right here and an opportunity to make some serious money from buying these foreclosures at very big discounts from banks.

Subprime mortgage woes push foreclosures to new high

National delinquency rates on mortgages rose in the second quarter as did the rate of loans going into foreclosure, according to a study released this morning by the Mortgage Brokers Association.

The delinquency rate on residential properties was 5.12% of all loans outstanding in the April to June time frame. That’s up 28 basis points from the first quarter and up 73 basis points from a year ago.
And the rate of loans entering foreclosure was .65%, 7 basis points above the first quarter and 22 basis points up from a year ago.

Doug Duncan, chief economist for the mortgage bankers, said that 1% of all mortgages in Michigan had foreclosure actions started on them during the second quarter, which is essentially the same rate as during the first quarter of the year.

“While Michigan’s problems continue to escalate, however, Ohio’s have shown signs of leveling off, albeit at a high level,” Duncan said in a statement.

Michigan led the nation in foreclosure starts with a rate of 1% of outstanding loans, with Ohio in second place with .98% and Indiana with .91%. Michigan ranked second in overall delinquency rates with a rate of 7.55%, behind Mississippi with a rate of 9.33%. Louisiana was third with a rate of 7.29%.

Other states with high mortgage delinquency rates are Illinois, Kentucky, Tennessee and Pennsylvania.

States responsible for most of the nationwide increase in foreclosure actions are California, Florida, Nevada and Arizona, the study said. These four states have a disproportionately high share of investor loans and are more likely to default because they do not occupy the homes.