I usually try not to add fuel to the pessimistic fire that has engulfed the housing market over the last year and a half, but some stories need to be told. According to a February 13 article in the Detroit News, by Louis Aguilar, Wayne County posted the highest rate of home foreclosures among major metro areas in the nation during the month of January. The foreclosure rate was so high in fact, that it was 7 times more than the national average. Oakland and Macomb Counties have been hit pretty badly as well, and when you combine the foreclosure rates of Michigan's three major metropolitan areas, it is enough to push Michigan to 2nd Place among foreclosure rates for all 50 States. This apparently represents an increase of 147% over last years numbers, and the stagnant Michigan economy isn't helping matters either as every day we hear more and more discouraging news from the dying heart of Michigan's economy...the Big 3.
The Banking and Insurance Industries are scrambling to cover their um...losses and every day we are hearing new policies regarding Michigan loans...Some investors have decided to pull out of the Michigan market all together, and I've even been told informally and off the record of course by some local account executives that their companies are looking for anyway they can to deny loans with Detroit zip codes.
As Banks are deciding how they are going to deal with this problem, consumers are just trying to figure out a way to pay their mortgage payments. To help combat rising foreclosure rates across the country and to help keep people from losing their homes, the non-profit group ACORN, is introducing a new program called Home Equity Loss Prevention, or HELP. The ACORN website explains that "if you fall behind on your mortgage, a housing counselor may be able to intervene on your behalf with your lender in order to come to a resolution that will ultimately bring your loan current." Last year they helped 4,800 families across the country save their homes. Click here to view a list of lenders that participate in the program, or to get more information about ACORN Housing's HELP Program.
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