freep.com
October 23, 2008
Michigan foreclosure activity slows
BY GRETA GUEST
FREE PRESS BUSINESS WRITER
Foreclosure activity slowed in September nationwide and in Michigan, according to figures out today from RealtyTrac Inc.
The foreclosure Web site, based in Irvine, Calif., said foreclosure filings were reported on 265,968 properties during the month, a 12% decrease from August, but still a 21% rise from September 2007.
In Michigan, which ranked sixth nationwide for foreclosure activity in September, filings were reported on 10,553 properties, a 22.4% decline from August and a 25.9% retreat from September 2007.
September marked the third consecutive month that Michigan had a decline in foreclosure filings, which could mean the state is nearing the bottom of such activity even though it still ranks high nationwide, said Daren Bloomquist, a RealtyTrac spokesman.
"Possibly, Michigan is a little ahead of the curve," Bloomquist said. "It signals that possibly, the market can get those bank-owned properties out of the system and start recovering."
The Michigan figure included 4,502 notices of default, 946 notices of sale and 5,105 bank repossessions, according to RealtyTrac data.
The national figures were particularly affected by a 51% decline in filings in California, which represents a third of the nation's foreclosure activity each month, said James J. Saccacio, chief executive of RealtyTrac.
Saccacio said most of the September decline could be attributed to state laws that have "at least, temporarily, slowed down the pace at which lenders are moving forward with foreclosures."
The California law, which took effect last month, requires lenders to make contact with borrowers at least 30 days before filing a notice of default.
While Michigan does not have a similar law, a settlement announced earlier this month by Michigan Attorney General Mike Cox with Countrywide Financial could slow foreclosure filings.
As part of the settlement, Countrywide is required to refinance as many as 9,700 mortgages in Michigan and keep more families in their homes.
Nevada, Florida, California and Arizona led the nation in foreclosure filings in September.
Foreclosure filings nationwide rose 71% in the 3 months that ended Sept. 30, as compared with the same period a year ago.
In Michigan, foreclosure filings were up 2% for the third quarter, compared with the same period last year.
And filings were down in metro Detroit by 24% in the third quarter, compared with the same period in 2007.
Contact GRETA GUEST at 313-223-4192 or gguest@freepress.com.
