Metro Detroit area hits foreclosure record

[웃 910]

http://www.detnews.com/article/20100715/BIZ/7150339/Metro-area-hits-foreclosure-record

Pace slowed in June, but numbers for first half of year top '09

Louis Aguilar / The Detroit News

Metro Detroit set a new record in foreclosure activity in the first six months of this year, according to Irvine, Calif.-based RealtyTrac.

The 47,563 foreclosures from January to June were a 35 percent jump from the first half of 2009, which originally had set the regional record for foreclosure activity since the housing meltdown began in 2007.

The one silver lining is that June foreclosures dropped 15 percent compared with May. The online foreclosure database tracks all phases of foreclosure.

Metro Detroit's experience mirrored national trends, said James Saccacio, chief executive officer of RealtyTrac.

"The second quarter was a tale of two trends," Saccacio said. "The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives."

In southeastern Michigan, lenders have nearly tripled the sale of homes for less than what is owed on the mortgage. The practice, known as a short sale, is on a record pace in the 10-county area, according to Realcomp II Ltd. a Farmington Hills-based real estate data agency.

Between January and April, 2,284 home sales were short sales, up 171 percent from 842 recorded during the same period last year.

Homeowners usually seek a short sale because of an unexpected event such as a work transfer or financial distress, a divorce or missed mortgage payments that trigger the beginning of the foreclosure process. They ask their lender to let them try to sell the home for less than what they owe on the total mortgage.

The foreclosure news comes at a time when other parts of Metro Detroit's housing market show some signs of improvement. In June, the median sales price in the four-county region improved 50 percent from the same time a year ago to $75,000 for homes and condominiums, according to Realcomp's monthly report.

Sales in Metro Detroit -- Livingston, Macomb, Oakland and Wayne counties -- improved 0.3 percent for the first six months of the year compared with the same time last year, but other indicators experienced larger gains.

The backlog of inventory fell 23.6 percent, nonforeclosure sales rose 59.4 percent and foreclosure sales declined 35.4 percent last month.

[CDAgirlMI 51]

Sad, but not surprising.

[Gary and Alla 3,696]

This will be marketed by the Democrats running the city as

DETROIT WINS!!!!!!!!!!!!!!!!!!!

[spookyturtle 9,466]

This will make BY happy.

[Nagishkaw 510]

Detroit breakdown, Motor City shakedown.