Southfield (WWJ)  -- The American Dream is crumbling for many home owners in Michigan who find themselves at foreclosures door. 

WWJ's Florence Walton reports Michigan State Housing Development Authority statistics show the state is second in the nation in the number of foreclosures when homeowners had subprime adjustable rate home mortgages.  Detroit's home foreclosure rate was the highest in the nation in 2006. 

David Webb of Hudson and Marshall, which auctions off foreclosed homes said Michigan has a triple "whammy."

"Detroit's in a mess, I mean it's been a mess now for awhile, you've got the subprime fiasco, you've got the adjustable rate mortgages, you've got your auto industry, so you've got three whammies in a row," Webb told WWJ.

Webb said alot of markets don't have but one or two of those issues.

Falling home values and adjustable rate mortgages are pushing home foreclosures to record numbers in Michigan and across the country.

Wayne State University law professor John Mogk says the problem hasn't peaked yet.

"There's more of an issue here than simply increasing rates, people have lost their jobs, the economy is struggling, and frequently there are family issues as far as breakup or the need to move and most of the subprime loans don't have any equity behind them," said Mogk.

Mogk says many times people have taken loans with little or no down-payment and the prices of their homes drop to below what they owe.

The increasing number of foreclosures is broadening the scope of people seeking mortgage counseling and assistance from non-profit agencies both in numbers and socio-economic groups.

“We look into the waiting room nowadays and see people sitting there in business suits, seeking assistance with their mortgages and advice about foreclosures,” John Ziraldo, CEO of Lighthouse of Oakland County told our Realview e-publication.  

“Our former donor base is now our client base in many instances, facing foreclosure or utility shut-off. Many of our clients requesting utility and housing assistance have never visited Lighthouse before. We definitely have seen a severity of need increasing in the areas of housing and utilities. We’re receiving significantly more requests for mortgage assistance versus rental assistance.”

Ziraldo said that, in the most extreme cases, these families have expended their savings, disposed of “luxury” items, and still have found themselves facing foreclosure or other emergency situations.

Among the services Lighthouse offers to help homeowners keep their lives, homes and credit rating intact include a six-week course in how to request and read a credit report, how to raise credit scores, how to pay down debt, and how to make wise financial decisions. It also offers one-on-one financial counseling if there’s an immediate threat of foreclosure.

Click here for more information about foreclosures and real estate from WWJ's Realview e-publication. 

Click here for information on housing counseling services from the U.S. Department of Housing and Urban Development.

Tune in to WWJ Newsradio 950 Tuesday as Florence Walton reports on people who've lost their homes.