Expert says decreasing foreclosure rates in Michigan are a bad sign for our economy

(WXYZ) - The foreclosure rate in Michigan is decreasing according to a new report. Before you allow yourself to feel relief, you should know- real estate insiders insist, it is not a sign the economy is improving.

They say it is simply because banks are moving slowly through the foreclosure process because of government pressure.

“Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond,” said RealtyTrac C.E.O. James J. Saccacio in a statement.

That’s right; he says the decreasing rate of foreclosures is bad. It may mean we are going to face trouble for a longer time.

For now, the number of foreclosure filings in the area fell to a two year low in July. According to RealtyTrac Incorporated 1 out of every 417 properties in Michigan was facing foreclosure. Michigan has the fourth highest rate of foreclosure when all properties are included. When you only take homes into account, Michigan still ranks seventh.

Folks who live near foreclosed homes, like Alan McDonald of Royal Oak are glad to see foreclosures decrease for now.  They say something needs to be done to keep foreclosure rates down.

"We have nice neighborhoods here,” said McDonald. “We have nice houses here, we pay good taxes, we keep our houses up. And when you see a foreclosed home vacant homes that's all in disarray, it's not good for anyone."