How do Properties End Up as Michigan Bank Foreclosures?

by on States

If you are wondering about the dramatic rise of national foreclosures rate, then you should know that it was actually the result of so many factors. In some states, the foreclosure situation has even turned from bad to worse. For example, the number of Michigan bank foreclosures for sale has soared to new records. Last August, the state had the 6th highest foreclosures rate in the nation, with one filing for every 288 homes.

A couple of years ago, the real estate market experienced what they called a “housing boom”. The good economic situation has resulted in many Americans shopping for new homes. Smelling big commissions, aggressive lenders ignored the standard lending practices that usually involved careful evaluation of the buyer’s credit history. These lenders allowed buyers with shaky credit to purchase homes which they could not afford. On the other hand, there were those buyers who, despite their good credit scores, opted to be enticed by offers of no down payments and adjustable rates.

Most of these buyers did not realize what they were getting them selves into until it was too late. As interest rates reset, these buyers struggled to meet their monthly mortgage payments. Unfortunately, there were owners who had no means and capabilities to stop foreclosure. After going through the usual round of foreclosure auctions, many lenders ended up with these Michigan bank foreclosures.

The 126 percent increase from last year’s foreclosure rate is proof enough. With the large inventory of Michigan foreclosure homes, local officials, experts and even homeowners are worried about the effect on home prices that the current market situation will bring.

The only people who are smiling nowadays are the real estate investors. These buyers have actually shifted their attention to bank foreclosures in Michigan because of their amazing return potential. For the best deals, subscribe to foreclosure listings offered by reputable brokers like Bank Foreclosures Sale.