Causes For The Increase In Michigan Foreclosures
If you have been paying attention to the news, you probably realize that there has been an increase in Michigan foreclosures. There are many reasons for this and this article is going to take a look at a few to help you better understand what is causing these Michigan foreclosures.
Michigan Foreclosures - A Predictable Outcome
Probably the biggest reason for the increase in Michigan foreclosures has been the downturn of the state's economy. The auto industry has been the driving force, no pun intended, behind Detroit and most of Michigan's economy for over seventy five years. This has been a boon and bust for the state as during the golden years of American auto manufacturing it was great, now not nearly as much.
The first that caused problems in Michigan was the moving of manufacturing overseas or out of state. This caused a loss of many of the manufacturing jobs that people from Michigan depended on. While this was bad and does have a lot to do with the recent increase in Michigan foreclosures, even worse was the fact that the automakers started to loose ground to foreign companies.
General Motors, Ford and to a lesser degree Chrysler enjoyed dominance of the American auto market up until the mid eighties. Quality concerns and high cost caused sales of the American made autos to slow which in turn made quality control even more difficult. It was a downward spiral that started some twenty years ago and at this time it is still unknown as to whether it has hit bottom. Because of this many of the top workers in the auto industry have lost their jobs.
Because there is so much instability in the Michigan job market, Michigan foreclosures have been on the rise as people find it more and more difficult to sell their homes or make their payments. They literally are left with no other options except to foreclose.
In addition to the financial strains that the downturn of the Michigan economy has caused there is also the stress and emotional factor. This has caused many people to separate, which in turn has affected the rate of Michigan foreclosures.
As you can see there are many ripple affects from the down turn of the Michigan economy and because of this many people have had trouble making payments on their home and have been forced to foreclose. Hopefully this article has given you some insight into why Michigan foreclosures occur.
