As if it wasn’t bad enough that the local economy has been steadily losing jobs in the automotive sector, Detroit reported the highest foreclosure rate of the top 100 metropolitan statistical areas (MSAs) in the country for the third quarter of 2006 as well.

After two straight quarters when Indianapolis, Atlanta and Dallas led the nation in foreclosure rate, Detroit took over the top spot on the RealtyTrac Q3 2006 U.S. Metropolitan Foreclosure Market Report — followed by Ft. Lauderdale and Denver. Miami, Dallas, Indianapolis, Ft. Worth, Atlanta, Las Vegas and Memphis rounded out the top 10.

Unlike the first two quarters of the year when foreclosure activity was noticeably slowing down in many of the top 100 MSAs, the tide turned during the third quarter with the majority of MSAs now reporting growth in foreclosure activity. This trend corresponds to what RealtyTrac is seeing in the national real estate market where sales volume is slowing down — heading negative in many areas of the country — price appreciation has slowed to either single-digit rates or even negative rates in a few instances, and interest rates on adjustable-rate mortgages are starting to reset to higher levels.

                  Detroit Foreclosure Rate Heat Map -- October 2006