Detroit Plans to Buy Foreclosed Homes for a Bigger Plan

Posted: Dec 23, 2010 |

The city government of Detroit has announced plans to buy foreclosed homes in identified locations, renovate those properties, and later sell them. Mayor Dave Bing said the initiative would be integral to a bigger plan of reshaping the modern Detroit. The city aims to cluster its current residents together in just about seven to nine neighborhoods so that overall quality of lives could be further improved.

City officials said there are plans to utilize some federal grant programs for the rehabilitation of Detroit's housing stock. The city would renovate homes it already owns and buy more foreclosures for further renovation. In the future, such renovated homes would be put back into the market to be purchased by homebuyers. The effort is expected to stabilize most of the traditional neighborhoods in the city.

Detroit aims to boost jobs and at the same time improve public services. Part of the initiatives set is to relocate some communities to specific areas, according to a new city development plan. The city is yet to identify the communities that would be torn apart and those that would be rehabilitated. As mentioned, there would only be about seven to nine residential communities that would be left.


To make it possible, incentives would be offered and provided to families living in communities that would be dismantled. They would be offered with very affordable homes at any of the seven to nine residential communities. Experts are currently studying geographic data for the new urban planning initiative.

Logically, foreclosed homes would play important roles in the ambitious project. Most foreclosed homes in the proposed new residential communities would be acquired by the government and then renovated, so those properties could be sold or awarded to families who would relocate from those communities that would be shattered.

The city government of Detroit said consultations and dialogues with 40 small communities in the area would be held soon. Such meetings would be held until March. Execution of the actual redevelopment plan would take place in December 2011.

Detroit is Michigan's biggest city. It should be noted that the population of the city has significantly declined from a record high of 1.8 million people in 1950 to just about 900,000 last year. Some analysts and critics assert that such a redevelopment plan should have been done and executed 10 years to 15 years ago prior to the economic recession.

For more news about US foreclosures, visit ForeclosureConnections.com.

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