The rapid pace of Michigan foreclosures in recent months has more buyers looking at the real estate market as a good investment, agents who specialize in foreclosures say.

Many investors do make good money in the foreclosure market, but it can be tricky for novice real estate investors, said Marshall Mandell, associate broker for RE/MAX in Farmington Hills.

“If you can buy and hold real estate for a number of years, I would say it is a good time to buy now. For a short-term goal, it is riskier,” Mandell said.

Michigan ranked third nationwide for foreclosures in September, behind Colorado and Nevada, according to RealtyTrac, an Irvine, Calif.-based online foreclosure Web site.

Michigan reported 7,846 properties entering foreclosure in September, a 14% increase from August and almost triple the rate of September 2005. That works out to one foreclosure filing for every 538 households.

And metro Detroit ranked second nationally among metropolitan areas, with one foreclosure filing in September for every 197 households, or a total of 4,190 properties entering some stage of foreclosure. The Greeley, Colo., area had the highest default rate.

Foreclosure filings are up 39% nationwide this year and already have exceeded the total reported for 2005. RealtyTrac predicts that if the current pace continues, foreclosures will exceed 1.2 million by the end of the year.

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Posted: 10|22|06 at 5:27 pm. Filed under: US Auction News.