Detroit Leads Urban Areas with Highest Foreclosure Rate

Posted in General, November 10th, 2006 |

New statistics show that during the third quarter Detroit led all other urban areas antionally with the highest rate of foreclosure. With one out of every 80 houses entering some stage of default or foreclosure, Detroit’s foreclosure rate rose 42% during the second and third quarter.

Many experts say that this is no surprise. Michigan is following the national trend, with many more homes entering foreclosure due to dropping property values, rising interest rates and the adjustment of Adjustable Rate Mortgages bought up during the housing boom of the early decade. However, due to certain circumstances unique to the state, Michigan is being hit especially hard. Michigan’s economy has been struggling for years now, and currently the state holds the second highest unemployment rate in the country. It seems people simply don’t have the means to keep up with their monthly mortgage payments.

While investing in Michigan foreclosures right now may offer very low prices, it might be best to see where the market is going in the area before committing to any big investments.

[via The Detroit News]