A Ray of Hope for Detroit Residents Facing Foreclosure

November 24th, 2008

A Ray of Hope for Detroit Residents Facing Foreclosure
The local governments across the state of Michigan are making preparations to spend over $263 million to help the homeowners facing foreclosure on their real estate. This money can be used to help buyers to purchase vacant homes and also meet the closing costs. Also, the buyers are supposed to get interest-free loans in some cases that are not paid back till the closing of the property.

The loans can be pardoned in other cases where a person is staying in a home for over five years. The abandoned homes that have been targeted are bank owned that has to make discounts to participate. Apart from that, the future buyers have to meet the income guidelines. They are required to stay in the home so that it cannot be exploited as rental or abandoned property. About $47 million is being expected by Detroit and $26 million by Wayne County.

The cities of Southfield, townships of Clinton and Canton, Dearborn and Sterling Heights are also hoping for millions of foreclosure aid grant money. Detroit real estate is suffering more than any other cities in Michigan as a result of foreclosure. About a total of 45,000 homes in Detroit, have been abandoned due to this housing crisis. The official of this city are planning to expend half of the $47 million demolished properties. Besides, they are also planning to purchase a few homes, make the required repairs and get them sold.

About $2 million foreclosure grant money is being expected by Waterford. There about a total of 839 properties have been left vacant. There are plans to make an expenditure of $500,000 for purchasing and demolishing the blighted properties for making a redevelopment. The officials of the Macomb County are expecting another 8,000 to 10,000 foreclosures in 2008. They have plans to spend $20.2 million after the hardest hit places like New Haven, Sterling Heights, Warren, Roseville, Mt. Clemens, and Eastpointe.

Over 1,000 homes were subject to foreclosure this year in Warren. This also includes homes of the affluent areas in the northern part. It will use $5.8 million in helping people to repair the houses and get the loans. According to supervising publicist of Planning and Development Department Sylvia Crawford, “It is tremendously good news for homeowners in the city of Detroit who have seen wonderful neighborhoods impacted greatly by foreclosures,” It is hoped that the foreclosure aid program will help in increasing the value of homes and motivate for growth and development in the housing sector.