Ann Arbor not Exempt from Foreclosures

To those of us who live in Ann Arbor, we have always thought we were exempt from the rest of the state of Michigan when it came to the housing industry downturns. Not this time. A quick look at Foreclosurenet.net will give you a list of all the foreclosure homes in Washtenaw County. There are 298 homes listed on this site.

Most of foreclosed homes in Ann Arbor and in the State of Michigan are due to homeowners either loosing their jobs or being transferred and not being able to sell their homes for what they owe.

In the 90’s many homeowners were quick to refinance their homes, assuming the market would continue to rise at the historical 8% in Washtenaw County rate. Opps, it didn’t happen and the refinance appraisals were coming in high.

As a Realtor when I visit sellers and the homeowner tells me they had an appraisal that was higher than what I determined the market value for selling to be, the homeowners were dismayed. Traditionally refinance appraisals are always high, as the banks would anticipate the homeowner was staying in their home and not selling. There is a difference in a refinance appraisal and a 90 sale appraisal to sell.

So many, many homeowners refinanced, pulled money out to buy a car, take vacations and pay off credit cards. Then the bubble burst and not only did homes stop appreciating but they declined in value. I am currently seeing home prices down to the 1998 prices in many of the areas in Washtenaw County.

If you area buyer this is a good time to take advantage of the market conditions in Ann Arbor and Washtenaw County.

Here is a cute video, I found on YouTube by Dave Girtsman that was linked to on Twitter.