Where have all the Metro Detroit foreclosures gone? There is a definite slowing down of foreclosuresdue to several reasons.
Short sales – There are more short sales being completed so those homes never become Metro Detroit foreclosures.
Sheriff sales – When a home in Michigan goes into foreclosure the first step is sheriff sale. Some homes are being sold to investors or being sold and redeemed out. So they have entered the foreclosure process but got sold before the bank took possession. So they are not sold as a foreclosures.
Non- profits – Some banks and lending institutions are giving the Metro Detroit foreclosure to a non-profit. The non-profit is fixing up and reselling the home. The bank is getting a tax deduction for giving the home to the non-profit. So everybody makes out in this deal. A better home is on the market, and the home is off the bank’s books.
So not only is the amount of foreclosures going down but these three items are reducing the remaining number of foreclosures that are hitting the Metro Detroit real estate market.