Home foreclosures hit record high, Michigan ranks 3rd

Home foreclosures hit record high

Mich. ranks 3rd nationally; job losses, credit restrictions cited

By GRETA GUEST • FREE PRESS BUSINESS WRITER • March 6, 2008

Nearly 6% of all mortgages were delinquent nationwide in the fourth quarter and foreclosure starts were at the highest levels ever, according to a report issued this morning by the Mortgage Bankers Association.

Michigan continues to rank high for delinquencies and the number of homes in foreclosure. Michigan ranked second nationally with 8.97% of its home loans delinquent during the three months ended Dec. 31. Mississippi was first with 11% of delinquent loans and Georgia was third with 8.37%.

Michigan ranked third when it came to foreclosure inventory with 3.38% and third based on foreclosure starts with 1.29% during the quarter.

The total national delinquency rate is the highest in the mortgage bankers survey since 1985. The survey covers 46 million loans and represents more than 80% of all first lien residential mortgage loans outstanding in the United States.

“Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state,” said Doug Duncan, chief economist for the mortgage bankers.

“In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell the homes with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face.”