Foreclosures were up 10% in 2023, according to a report from real estate date firm ATTOM. Michigan was ninth in total foreclosures, and thirteenth in foreclosure rate. Michigan had 12,490 total foreclosures and a foreclosure rate of 0.27% last year.
Across America, Attom found that the 2023 national foreclosure rate was 0.26%, which was up ten percent from 2022 and 136% from 2021. However, the final foreclosure rate was lower than pre-pandemic levels. They found the rate was down 0.36% compared to 2019.
In addition to having the ninth-highest foreclosure rate, Attom’s report noted that Michigan was second in America in bank repossessions, with 3,634 REOs last year. Detroit had 1,795 REOs, one of the most among major metropolitan areas with over 1 million people. Attom noted that nationwide REO rates had decreased by 2% compared to 2022.
In addition, Michigan was one of six states that saw an increase in foreclosure initiation processes compared to 2019. Michigan has had a 15% increase in lenders starting foreclosure proceedings compared to 2019.
Wayne County led the state with 3,411 foreclosures and a foreclosure rate of 0.43%. Oakland County had 1,147 foreclosures and a rate of 0.21% and Macomb had 1,131 foreclosures and a rate of 0.31%.
Attom's CEO Ron Barber said the rise was a “market correction rather than a cause for alarm.” He added, “It signals a return to more traditional patterns after years of volatility,” in the report. Barber also said that “Our data suggests that while foreclosure activity may fluctuate, it’s unlikely to approach the highs seen in the last decade.”
He said the numbers would provide investors and homeowners greater insight for planning and investment.
In September, The Michigan Public Policy Survey, a survey of local officials from across the state, found concern over a lack of affordable housing. The survey, conducted by the Center for Local, State, and Urban Policy at the University of Michigan, said that only 27% of local officials said they had adequate affordable housing. 54% of respondents said they had too few entry-level housing options.
