Meanwhile, manufacturing-dependent Midwestern states are continuing to record foreclosure rates that are well above the national average, according to ForeclosureS.com, Fair Oaks, Calif.The investment advisory firm said the level of foreclosure activity in Chicago is more than double the national average. "The Chicago metro area as a whole posted a miniscule increase in May after a 57% jump in April, but in Cook County, the increase was about 4%," said Alexis McGee, president of ForeclosureS.com. Ms. McGee said a healthy housing market in Chicago has been enabling many financially distressed homeowners to sell their way out of foreclosure, but that this has not been the case in Michigan. "Over 10,000 homes have actually been lost in foreclosure in Michigan this year," she said. "Massive layoffs and plant closings by the major automakers have dealt a heavy blow to that state."

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