Foreclosure Availability May Drop Off by 2013 for Metro Detroit
Where Have All the Metro Detroit Foreclosures Gone?
Investors are scooping up foreclosures in Michigan and other states. On top of that, first-time buyers are shooting for deep discounts available through foreclosures when they buy homes in cities around metro Detroit (Northville, Novi, Plymouth, Canton, Royal Oak, etc.)
The result is that foreclosures throughout the state of Michigan are going to become scarce.
According to RealtyTrac, September’s foreclosure filings were down 7% as compared the month prior, and down 16% from September 2011. Michigan is among the top 5 states with available foreclosures, but if home buying continues at the same pace those extra homes could become extremely scarce.
As of September of 2012, there were just over 180,000 foreclosure filings in the United States. “Filing” falls into one of the following events:
1. The issuance of a default notice on a home
2. A scheduled home auction by a bank
3. A bank repossession of a home.
The total number of foreclosure filings is the lowest we’ve seen since around July of 2007. Where it used to be easy to find foreclosures marked as much as 20% below market value, there are only a handful of states remaining where those deals can still be found – and Michigan is one of them.
In September for example, nearly 50% of bank repossessions occurred in 5 states; California, Florida, Illinois, Arizona and Michigan. If foreclosures return to 2007 level pre-recession, then now is the smartest time to look into getting pre-approved with a Michigan mortgage lender. Especially if you’re looking to buy a foreclosure in the metro Detroit area.
Why the Attraction with Buying a Foreclosure in Northville or Novi?
Not just in those two cities; there’s a lot of appeal with buying a foreclosure in the area – especially in cities like Canton and Royal Oak. Homes traditionally sell for a lot more at market. Buying a home in Royal Oak at a reduced rate is a great way to move into a much better community without taking the financial hit of a massive mortgage.
These Royal Oak foreclosures show obvious allure to first-time home buyers because of the discounts – it makes a significant impact on your household budget.
If your expected monthly payment on a Royal Oak mortgage were $1,400, imagine dropping that by as much as 20% by reducing the total amount of your mortgage with a foreclosure.
Interesting in buying a foreclosure in Royal Oak, Northville or Novi? Get pre-qualified first with a Michigan mortgage lender and discover just how much home you can afford.