Foreclosed Homes Won't Sell in Some Markets

Home foreclosure filings are expected to rise across the country this year. The situation is bad in California and Florida, where prices have plunged; but it may be worse in the Midwest, where many homeowners can't sell their homes for any amount.

Out of 500 leading foreclosure zip codes nationwide, 49 are in Ohio, 34 in Michigan and four of the top 10 are within the city limits of Detroit.

Pava Leyrer, president of the Michigan Mortgage Brokers Association, says there are so many foreclosures on the market that they are bringing down the value of surrounding homes.

The problem is not necessarily going to be confined to the Midwest: Experts say they expect a 7-percent drop in home prices across the country this year. Consumer advocates are pushing hard for reform in lending practices, but it may come too late for those who already own their homes and don't want them to end up on the auction block.



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