USA Foreclosures Increased By 81% in 2008

The picture is dismal – USA foreclosures increased by 81% in 2008. The states fared no better with increase in foreclosure numbers. Across the country 2.3 million have been ensnared by foreclosures according to RealtyTrac. In December the foreclosure postings increased by 17% in comparison to November and by 41% against the figures of December 2007.

Michigan recorded 145,365 foreclosure filings on 106,058 units and came to rank 6th in the country. It was a spike of 21.6% from 2007 and an increase of 107.9% from 2006.

Wayne County dropped to occupy 10th place in 2008. In 2007 it had ranked first. The fall was by 7.7%. The other counties in metro Detroit (inclusive of the counties of Oakland, St. Clair, Livingston and Lapeer) came to rank 25th with an increase of 42.6% from 2007 (30,817 filings).

The unemployment rate in Michigan was 9.6% in November 2008.

There was a 19.3% increase in bank repossessions in Michigan during 2008. The figures increased from 46,780 in 2007 to 55,801. Across the country there was a drop in bank repossessions during November by 8%. In Michigan it was by 2%. Most probably this was due to the fact that the two mortgage giants Fannie Mae and Freddie Mac kept on hold ongoing foreclosures.

The increase in December came as a surprise because it was hoped that due to the several measures being taken by the government and the mortgage institutions the borrowers would have been spared the trauma of foreclosures during the festive holiday season. It is feared that after 31st January there will be flood of foreclosures when the artificial cap on the process will be lifted. The numbers are expected to triple.

In 2008 the highest foreclosure activity was noted in Arizona, Florida and Nevada. California recorded the highest number of properties that had been foreclosed upon – 523,624. The credit crunch combining with the gloom in the employment sector gave people little options for refinancing.

But all are not pessimistic. Alexis McGee of Foreclosures.com can see some good signs. The number of affordable houses has increased, mortgage interest rates are low and the population of the country continues to grow. This is bound to generate demand. The unemployment figures are still below the numbers of the 1980’s.McGee commented that the bank repossessions have reached a level of 5,000 per month in the recent months in Michigan.