Major Midwestern city sees foreclosure decline

While much of the nation continues to struggle with high rates of home repossession and mortgage loan delinquency, the number of foreclosures in metropolitan Milwaukee, Wisconsin, declined in February.

The foreclosure rate in the Milwaukee area dropped 12.5 percent during February. In addition, the decline marked the second straight month this rate saw year-over-year declines.

Overall, the region had 915 foreclosure filings in February, falling from the 1,046 claims filed during the same time in 2010, The Milwaukee Journal-Sentinel reports. Five of the region’s seven counties saw fewer homeowners facing eviction by lenders. However, despite the improvements, area economists don’t expect the rate to improve significantly anytime soon.

“What has to happen is real take-home income has to rise for people to be able to cover these mortgages,” Russ Kashian, a University of Wisconsin-Whitewater economics professor, told the news source.

While improvements in the foreclosure rate are a positive sign for area homeowners, prospective buyers may not be as enthused, as 14 percent of new home purchases in 2010 were made on foreclosed properties.