Detroit Foreclosures Are Highest Totals in Nation for Third Quarter of 2006
Of all metro areas in the United States, the Detroit, Livonia and Dearborn area led the nation in mortgage foreclosures for the third quarter of 2006, according to figures compiled by MSN. While this ranking for Detroit foreclosures is as frightening as the idea of losing a home, it is also a sign of the times in a city which also ranks among the top in terms of unemployment levels.
There were 10,316 Detroit mortgage foreclosures in the third quarter of 2006. When broken down, that's one Detroit foreclosure per every 80 households!
Third quarter Detroit foreclosures are approximately 4.535 times higher than the national average. Even worse, Detroit foreclosures have jumped 41.9% from the totals of the second quarter in 2006.
So why have Detroit foreclosures increased at nearly a 50% clip from the second through the third quarter of 2006? Michigan unemployment rates for the month of November provide a revealing answer.
Michigan Unemployment Rates Also Lead the Nation
According to figures in a December Detroit Free Press story, Michigan's jobless rate remained unchanged at 6.9% for the month of November. However, this percentage was the highest in the nation for the month with Mississippi coming second at 6.7%.
While Michigan's unemployment is down 0.8% this year as compared to 2005, the problem is still a major concern. In fact, Detroit employment levels fell by 28,000 in November of this year. The brunt of this unemployment occurred in Michigan's largest city, Detroit.
While the Detroit auto industry has typically been the backbone of the state's manufacturing sector, it has recently struggled as its sales and market shares have fallen significantly. In turn, many Detroit auto manufacturing workers, especially those with lower paying jobs, have been laid off due to the poor business.
With the global auto sector struggling in general, it may be a long time before there is some relief for the Detroit auto industry.
This is unfortunate news for those manufacturing workers in Detroit who are struggling to make ends meet even with a job and steady source of income. This problem is only compounded when unemployed and having no income.
For many unemployed families, it becomes a matter of choice for where to allocate sparse money. Often, this money will have to be used for basic necessities like food.
Consequently, it is no surprise that many unemployed Detroit natives have fallen behind on their mortgage payment and consequently face foreclosure in a matter of months during the tough economic times in the state.
While people may stop foreclosure with Chapter 13 bankruptcy, refinancing, a debt workout plan, or other options, many Detroit families have been unable to do so as the striking figures from the third quarter show!
If you're facing foreclosure, gather information about your options as early as possible; by taking control as soon as you know you're in trouble, you'll greatly improve your chances of saving your home, or of selling your home or negotiating a settlement that protects your credit and avoids a deficiency judgment.