One-Fifth of Detroit's Population Could Lose Their Homes

[nain rouge]

I can only guess that this is the goal: Getting the people who live in Detroit to leave, demolishing their empty houses, and salting the earth so that nothing may grow again.

Exactly. All the talk about bringing Detroit back to a million people is nonsense, unless you're taking the really long view. Too many neighborhoods just aren't viable anymore - the retail and schools were long ago demolished and the residential areas are largely vacant. The abandoned factories are now liabilities. There aren't enough resources to bring back neighborhoods like that. The city has to focus on the neighborhoods that still have potential.

[Willi]

There can be an emphasis made on certain areas,
while still being in maintenance mode on others.

People need help, but appear to simply Not Know how to ask for it, seek it out, find it.
How many people actually read all 3 pages of the article before posting ?

[Gistok]

Hopefully I'm not part of the few

Sorry to have been so ambiguous... you and I may not see eye to eye on everything, but we can keep it civil AND using the concepts of logic....

That Amen was that I was in agreement...

[sumas]

Pretty sure that any intelligent person on the forum realizes Detroit will never be what it was. I enjoy the nostalgia and all but I look to see Detroit recreate itself in a new way.

It does hurt to see the remaining population so maligned. When people say such hurtful things they are talking about my neighbors and of course us too. The comments are plain ignorant.

I have great faith that the youth [[home grown) and imported will find a new future,

[Richard]

Q: What is this program?
A: This loan program provides help for Michigan homeowners that have fallen behind on their property taxes. A one-time payment of up to $30,000 may be granted to your county treasurer. As long as you live in your home for 5 years after receiving this loan it is 100% forgivable.
Q: How do I qualify for the Past Due Property Tax Assistance forgivable loan?
1) You must have a qualifying involuntary hardship. Examples include: losing a job, income reduction, a medical condition, death, divorce and disability, and one-time critical expense [[including medical bills, repair costs for property damage, repair costs for vehicle damage).
Note: the examples of involuntary hardships are not all inclusive and should be used only as a general guide.
2) You must be able to keep current with your property tax payments now. This loan is for past property tax debt.
3) You cannot have any delinquent mortgage payments.
4) The property you are applying for must be one of the following:
• A single-family home
• 1-4 unit properties are eligible if one unit is occupied as primary residence
of homeowner
5) You must have limited cash on hand [[cash, checking, or savings) with no
more than 1 1⁄2 times your annual property tax amount.
Q: What would make me ineligible for Property Tax Assistance? A: You would be ineligible if you have:
• A conviction within the last 10 years on a financial-related felony; including larceny, theft, fraud, forgery, money laundering and/or tax evasion
• A completed Foreclosure Sale on the property you are applying for

The rest is here,

http://clearcorpsdetroit.org/resourc...ax-assistance/

[ABetterDetroit]

A city has to run on "something" and Property Taxes provide a big chunk of the puzzle

Never heard "you can't squeeze blood from a turnip"? Tax the income. That's where the money is. It sure is not in residential property values in Detroit. Why exactly does the state refuse to withhold the city's income tax? Must be a reason, hmmm...

[ABetterDetroit]

A city has to run on "something" and Property Taxes provide a big chunk of the puzzle

Never heard "you can't squeeze blood from a turnip"? Tax the income. That's where the money is. It sure is not in residential property values in Detroit. Why exactly does the state refuse to withhold the city's income tax? Must be a reason, hmmm...

http://taxes.about.com/od/statetaxes...rst-states.htm

[Willi]

Tough to tax income when many get paid in cash as day laborers;
BUT everyone has to sleep somewhere out of the rain and snow.

[Danny]

In the article it says 142,000 Detroiters will be show out the door. It basically means 141,000 blacks, and 1,000 others. In the meantime since 2010 there has been a small gain in 25,000 whites [[mostly young professionals). Black folks will be push out of Detroit by the thousands by after 2030. Most once of their pride communities will be gentrified and Detroit will be diverse once again.

[maverick1]

This situation bothers me because it doesnt have to happen. A huge problem is the 18% interest rate for being late. I can understand this in a good economy but considering Michigan's economy has sucked for the past 12-14 years and Detroit has a 40% unemployment rate. What sense does it make to keep this? Why can't there be a moratorium on the interest rate and let people catch up? The city and county say they don't want to foreclose but have to because it's the law. Why not lobby to get the law changed or suspended temporarily considering the circumstances? People aren't tripping over themselves to move into Detroit so the current residents lose their home, move out, scrappers come, and then you have more blight. In the meantime the city now owns a shell of a house no one wants. I think the yearly auction shows that most of these properties aren't selling like hotcakes. I also see the argument that if people are poor then they shouldn't own a home they should rent. Rent where in Detroit? Almost 80% of the residences in Detroit are single family homes.

[ABetterDetroit]

This situation bothers me because it doesnt have to happen. A huge problem is the 18% interest rate for being late. I can understand this in a good economy but considering Michigan's economy has sucked for the past 12-14 years and Detroit has a 40% unemployment rate. What sense does it make to keep this? Why can't there be a moratorium on the interest rate and let people catch up? The city and county say they don't want to foreclose but have to because it's the law. Why not lobby to get the law changed or suspended temporarily considering the circumstances? People aren't tripping over themselves to move into Detroit so the current residents lose their home, move out, scrappers come, and then you have more blight. In the meantime the city now owns a shell of a house no one wants. I think the yearly auction shows that most of these properties aren't selling like hotcakes. I also see the argument that if people are poor then they shouldn't own a home they should rent. Rent where in Detroit? Almost 80% of the residences in Detroit are single family homes.

100% agree. It's not like the credit card business.

[Willi]

Why isn't everyone protesting the banks and their policies ?

[Wesley Mouch]

Why isn't everyone protesting the banks and their policies ?

Simple. The banks are not running for public office.

[Willi]

But obviously the banks ARE creating public policy in a city that basically declared bankruptcy.
They are part and parcel of the governing body in sooo many peoples lives.

http://law.jrank.org/pages/11800/Interest-Rates.html

[Wesley Mouch]

But obviously the banks ARE creating public policy in a city that basically declared bankruptcy.
They are part and parcel of the governing body in sooo many peoples lives.

http://law.jrank.org/pages/11800/Interest-Rates.html

You're quite right about this. Banks are indeed part of public policy. But the problem isn't the bank -- it is the law. And the law is set by the people and their legislature.

I don't think most banks like the way things work either. Foreclosures are not good for them -- but they are better than the alternative of doing nothing at all when they aren't paid.

The banks operate under the law. The law certainly should be changed to require a change to the rules when the economy has a sudden swing. I think the banks would be OK with this.

We live with regulated banks now. The regulations need to change. So let's change them.

[[And yes, I remain a libertarian -- but I'm also a pragmatist. We don't have a free market right now -- so we're just adjusting the rules for the better.)

A suggestion I heard recently was that banks should become participants with the borrower in the house. Not view it as debt, but as investment. So if the value goes down -- the bank reduces the payment. If the value goes up, the bank shares in the profit. I think they would buy into this.

[Willi]

The Detroit Land Bank is a public authority dedicated to returning
Detroit’s vacant, abandoned, and foreclosed property to productive use.
Programs include auction, side lot, community partnership and demolition.

CONTACT
65 Cadillac Square
Suite 3200
Detroit, MI 48226
QUESTIONS: 1-844-BUY-DLBA
EMAIL: info@buildingdetroit.org

After seven years hosting the weekday talk show that’s the local programming backbone
on WDET 101.9 FM, Craig Fahle is leaving the Detroit public radio station
to become director of public affairs and senior adviser for the Detroit Land Bank Authority.

http://www.buildingdetroit.org/commu...ship-overview/

[Mark Smiles]

You're quite right about this. Banks are indeed part of public policy. But the problem isn't the bank -- it is the law. And the law is set by the people and their legislature.

I don't think most banks like the way things work either. Foreclosures are not good for them -- but they are better than the alternative of doing nothing at all when they aren't paid.

The banks operate under the law. The law certainly should be changed to require a change to the rules when the economy has a sudden swing. I think the banks would be OK with this.

We live with regulated banks now. The regulations need to change. So let's change them.

[[And yes, I remain a libertarian -- but I'm also a pragmatist. We don't have a free market right now -- so we're just adjusting the rules for the better.)

A suggestion I heard recently was that banks should become participants with the borrower in the house. Not view it as debt, but as investment. So if the value goes down -- the bank reduces the payment. If the value goes up, the bank shares in the profit. I think they would buy into this.

The Banks sold people money, the people took the borrowed money and purchased property with it. The property purchased is merely collateral for the loan. Banks don't make loans so they can get the collateral. If we want to have it the law that people cannot collect the collateral for a loan that is not paid off, who is going to loan any money?


If we want to gift people property, then we have to decide who pays for the gift? If the government forces the banks to pay for the gift, this will merely be a tax on the banks customers, when the expense is passed thru. The question then is it fair to tax the banks customers to pay for the gift? In other words, why is this a burden bank customers deserve?


If politicians want to pass out gifts, shouldn't it come out of the general fund that everyone pays into, and compete with other spending priorities? Is t this a better policy, to have public spending policies out in the open, with out hidden taxes?


This way those who want to play Santa Claus, can so openly and honestly.

[maverick1]

The Banks sold people money, the people took the borrowed money and purchased property with it. The property purchased is merely collateral for the loan. Banks don't make loans so they can get the collateral. If we want to have it the law that people cannot collect the collateral for a loan that is not paid off, who is going to loan any money?


If we want to gift people property, then we have to decide who pays for the gift? If the government forces the banks to pay for the gift, this will merely be a tax on the banks customers, when the expense is passed thru. The question then is it fair to tax the banks customers to pay for the gift? In other words, why is this a burden bank customers deserve?


If politicians want to pass out gifts, shouldn't it come out of the general fund that everyone pays into, and compete with other spending priorities? Is t this a better policy, to have public spending policies out in the open, with out hidden taxes?


This way those who want to play Santa Claus, can so openly and honestly.

You are assuming these houses still have mortgages. Most of them don't. They are paid for. They are being foreclosed due to back taxes not bad loans.

[Honky Tonk]

I think MS's analogy still applies. If you "gift" the back taxes, how are you going to pay for services? A city runs on revenue. Detroit is in dire straits, because of two reasons. Incompetent mismanagement and lack of revenue. You'll need to solve both of those in order to grow, or even remain sustainable. If they succeed in forclosing on all the properties, then what? Most of the properties are worthless, for the most part, and now you have a large population of homeless poor people. Where do they go? Detroit already has high enough taxes and borderline city services. Your're not going to draw residents with increased taxes because a designer clothing store has opened.

[Dan Wesson]

One-Fifth of Detroit's Population Could Lose Their Homes

This is just another facet of downsizing. It's coming, it has to. It's inevitable.

[313WX]

One-Fifth of Detroit's Population Could Lose Their Homes



This is just another facet of downsizing. It's coming, it has to. It's inevitable.

I prefer to call it "Shrinking Pains."

Typically, when discussing major cities, we have to deal with the negative effects of these places growing too rapidly [[or what's called "Growing Pains"). In Detroit's case, we have to deal with the negative effects of it shrinking too rapidly.

The thing is Detroit's, more or less, in a league of its own as far as the rate it's shrinking at.

[Willi]

Detroit is not that unique

Vacant lands constitute a large fraction of urban land area.
In fact, vacant land in U.S. cities of more than 100,000 people
varies between 19 and 25% of total land area ,
while for cities with populations greater than 250,000,
vacant land makes up between 12.5 and 15% of total land area

I do not like urban animal raising - keep the animals out of the city for health reasons.
IF people actually HAD to pay for the land they grow vegetables on, it would not happen either.
I really think small pocket parks with public access to all, go a long way.
Corridors and connectors between fragmented urban green spaces enhance the area.
Community engagement is key, get people out of their houses, talking to neighbors, etc., etc.

http://www.thenatureofcities.com/

[313WX]

Detroit is not that unique

Vacant lands constitute a large fraction of urban land area.
In fact, vacant land in U.S. cities of more than 100,000 people
varies between 19 and 25% of total land area ,
while for cities with populations greater than 250,000,
vacant land makes up between 12.5 and 15% of total land area

I do not like urban animal raising - keep the animals out of the city for health reasons.
IF people actually HAD to pay for the land they grow vegetables on, it would not happen either.
I really think small pocket parks with public access to all, go a long way.
Corridors and connectors between fragmented urban green spaces enhance the area.
Community engagement is key, get people out of their houses, talking to neighbors, etc., etc.

http://www.thenatureofcities.com/

Vacant land in Detroit makes up over 40% of the city's area, way more than the 12.5% to 15% shown in that lin.

And that's not including the numerous blocks with nothing but vacant properties [[which make up another ~20%).

[Willi]

So Belle Isle and Rouge Park are vacant - does that figure in the 40 ?
30% of the city is roads: sweeping boulevards, streets, alleys, and a massive freeway system.
So there’s less buildable land than is often conveyed in the 139 square mile city.
The 40 number gets thrown around a LOT, but it's not that accurate

http://michiganradio.org/post/detroit-has-tons-vacant-land-forty-square-miles

[Dumpling]

I second the researcher in the article that said that people are relatively unaware
of their potential ability to buy the houses they live in at auction. I talked to several
neighbors today and two that I talked to were living in houses listed in the auction.
I filled them in about the WDWOT site showing houses at the auction that ends Monday
...but now they are more or less on their own finding someone to bid on their houses for
them in the short amount of time...a case of VERY asymmetrical information. WDWOT
can even things up a little - kudos to the webmasters there.