The state of Michigan is unique in that its economy is very much directly linked to the car manufacturing industry. This is because the Big Three US carmakers are headquartered in Michigan's largest city, Detroit. These days, it is a common knowledge that the auto industry is under a dry spell. After gasoline prices shot up, the financial situation slowed down and the economy slumped, the number of homes listed under Michigan foreclosure listings rose.

October 2008 data released by property tracking firm RealtyTrac show that Michigan is at No. 7 in the list of states with the highest foreclosure rates in all of the US. In comparison, the volume of foreclosed houses in Michigan is greater compared to those in New Jersey, Illinois and Ohio, but is lower compared to Nevada, Arizona, California, Florida, Colorado and Georgia.

So why is the weakening car industry blamed for the rise in Michigan foreclosures? As mentioned, the state's economy is dominated by the presence of giant car companies Ford, General Motors and Chrysler. When the economy slumped, sales of vehicles went down, too. Continuously declining car sales has been forcing the Big Three to shrink operations and eliminate jobs.

In 2007 and 2008, hundreds of thousands of jobs were lost due to weaknesses in car sales. More jobs are set to go in 2009 and 2010; that is if the car industry will not be able to stage a rebound. As people lose jobs, they default on their mortgages, and eventually lose their homes for repossessions and foreclosures. Logically, the number of units sold under Michigan foreclosure listings rises further. Homebuyers and investors could seize the opportunities and buy homes at very reasonable and practical prices.