Metro area hits foreclosure record
Pace slowed in June, but numbers for first half of year top '09

http://www.detnews.com/article/20100715/BIZ/7150339/Metro-area-hits-foreclosure-record

Louis Aguilar / The Detroit News
Metro Detroit set a new record in foreclosure activity in the first
six months of this year, according to Irvine, Calif.-based RealtyTrac.

The 47,563 foreclosures from January to June were a 35 percent jump
from the first half of 2009, which originally had set the regional
record for foreclosure activity since the housing meltdown began in
2007.

The one silver lining is that June foreclosures dropped 15 percent
compared with May. The online foreclosure database tracks all phases
of foreclosure.

 Metro Detroit's experience mirrored national trends, said James
Saccacio, chief executive officer of RealtyTrac.

"The second quarter was a tale of two trends," Saccacio said. "The
pace of properties entering foreclosure slowed as lenders pre-empted
or delayed foreclosure proceedings on delinquent properties with more
aggressive short sale and loan modification initiatives."

In southeastern Michigan, lenders have nearly tripled the sale of
homes for less than what is owed on the mortgage. The practice, known
as a short sale, is on a record pace in the 10-county area, according
to Realcomp II Ltd. a Farmington Hills-based real estate data agency.

Between January and April, 2,284 home sales were short sales, up 171
percent from 842 recorded during the same period last year.

Homeowners usually seek a short sale because of an unexpected event
such as a work transfer or financial distress, a divorce or missed
mortgage payments that trigger the beginning of the foreclosure
process. They ask their lender to let them try to sell the home for
less than what they owe on the total mortgage.

The foreclosure news comes at a time when other parts of Metro
Detroit's housing market show some signs of improvement. In June, the
median sales price in the four-county region improved 50 percent from
the same time a year ago to $75,000 for homes and condominiums,
according to Realcomp's monthly report.

Sales in Metro Detroit -- Livingston, Macomb, Oakland and Wayne
counties -- improved 0.3 percent for the first six months of the year
compared with the same time last year, but other indicators
experienced larger gains.

The backlog of inventory fell 23.6 percent, nonforeclosure sales rose
59.4 percent and foreclosure sales declined 35.4 percent last month.

[email protected] (313) 222-2760



>From The Detroit News:
http://www.detnews.com/article/20100715/BIZ/7150339/Metro-area-hits-foreclosure-record#ixzz0u9DwA1ku
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