Michigan Foreclosures Defy National Trend In May
DETROIT (WWJ) – Foreclosure activity in the state and Metro Detroit defied the national trend in May, with the state posting a 12.5 percent increase from April, while the national rate of troubled homeowners dropped 2 percent.
“Foreclosure activity dropped by two percent in May, compared to the previous month. It was down 33 percent from a year ago, and actually hit a number that’s a 42 month low, in terms of overall foreclosure activity,” said Rick Sharga, Senior Vice President with RealtyTrac.
But, Sharga said the “national decline” in foreclosure activity does not necessarily mean the problem is easing up.
“We are seeing massive delays in foreclosure proceedings right now, driven not by an improvement in market conditions but by lingering paperwork issues,” Sharga said.
Foreclosures in Michigan could stall again. State Attorney General Bill Schuette has expanded his investigation into questionable mortgage documents by issuing criminal investigative subpoenas to national mortgage servicing support providers.
Overall, Michigan had more than 14,600 homeowners in May who were either significantly behind on their mortgage payments, facing a sheriff’s auction or had lost their homes to the bank.