Wisconsin Mortgage Foreclosure Filings Slow Down

by San Antonio Attorney

Mortgage foreclosures, the terrifying blight of the housing real estate market for the duration of the Great Recession seems to have recoiled in Wisconsin to their lowest numbers since the 1990s.

Peaking in 2009 at 28,500, foreclosure filings last yearly were about a fourth of that figure, according to economics professor in University of Wisconsin-Whitewater, Russell Kashian.

The professor said he estimated that 2016’s filing figures look like they are going to come in lesser than in all the years before since the start of the new century.

The metro housing market in Milwaukee, where distressed or foreclosed properties comprised of up to 40% of sales between 2010 and 2012, they now account for only low single digits as a percentage of total sales.

Although the the recovering economy and increasing number of jobs are major causes, another aspect of the decreased foreclosure filings is just a matter of the tough people surviving, Kashian said. In general, he said, if homeowners were able to keep their house for the period of that difficult downturn, they will not lose it in any way.

New regulations on mortgage lending also have become stricter for certain borrowers to meet the criteria for mortgages. The rules were made in part as a response to the comparatively wobbly standards of loan lending that gave rise to the foreclosure crisis and fiscal downturn.

Kashian said the foreclosure crisis was mainly caused by allowing people to buy properties who were not financially ready, and there were bond buyers who were eager to invest in the U.S. real estate market.

In Wisconsin, which is composed of seven counties, foreclosure filings last year were the lowest in numbers for over the past 11 years.

While property foreclosures have declined significantly, an after effect from the catastrophic period still persists in Milwaukee City, which has roughly 1,000 tax-foreclosed houses.

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