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Mystery surrounding Detroit’s lack of legal action

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Mortgage Professional America | 29 Jun 2015, 08:50 AM Agree 0
The city hit hardest by the housing crisis is drawing criticism for its lack of legal action following the events.
  • Pat A | | 29 Jun 2015, 09:43 AM Agree 0
    Let's look at the numbers: 56% of the 65,000 homes that went into foreclosure are now abandoned or blighted. What about the abandoned or blighted homes that did not have sub prime mortgages? Nobody wants to live in Detroit, the issue is not sub prime mortgages.
  • Jeff | | 29 Jun 2015, 09:43 AM Agree 0
    It's easy for politicians to blame the banks and avoid the fact the communal leaders have been unable to create a healthy economy which gives their citizens gainful employment so mortgage payments can be made. The lack of jobs was and still is the reason for the blight! When people don't have income even mortgages with the lowest rates cannot be paid and foreclosures ensue.
  • Graham M | | 29 Jun 2015, 01:55 PM Agree 0
    I left the mortgage business for the demolition business. The price to demolish a home that has no asbestos is more like 6500 each. The cost is more like 422million with no asbestos included. Abatement is more than likely needed at around 230 million.
  • Reality Check from Detroit | | 29 Jun 2015, 03:12 PM Agree 0
    Please add to the list of why there are so many blighted homes in Detroit approximately 30 years of corruption and government interference, red tape and incompetence. Examples include never collecting water bills for decades. Now that they are trying to cllect them or turn off the water, not to be turned back until a payment plan or amounts due are paid. When you foreclose and find out the borrower or tenant never paid a single water bill, and you are now stuck with $10,000 in water bills on a house you can only sell for $5000, you just walk away. Or you go to evict and the 36th District Court of Detroit gives the borrower who has not paid the mortgage in 2 years another few months to live there for free, before finally signing the Writ of Eviction that has to be executed upon by the Judges relative or friend to do the trash out for thousands of dollars, even when nothing is left behind or that you have to pay to have a dumpster on the property the day before the trash out, without a lock on it, so all the neighbors use it and fill it with their bulk trash, since the city does not do a good job of trash removal. Now the Judges friend cannot put the contents from the house in the dumpster, as it is full, so they put it on the lawn and the lender is fined thousands of dollars for blight/litter, etc., plus the thousands for the trash out and dumpster. Or the County Sheriff, Walter Evans, who is now the County Executive refusing to even conduct Sheriff's sales, while he is running to be Detroit Mayor, because he "thinks" the banks are not properly using TARP funds to be keep folks in their homes. No sales were held even if the house was abandoned, a Court Order directed the sale, commercial property and the lender never received TARP funds. He refused to allow any sales. Interesting on the day of the primary he finally relented and would again allow sales. No coincidence there! Or the city used to require a city inspection called an ACR (Acceptance of Compliance and Responsibility), which of course was another $300 fee. You would pay the fee, and hope the city would get it done within weeks. Meanwhile vandals strip the house, removing the plumbing, etc., and eliminating all remaining value of the house. Then your scheduled appointment day arrives and the inspector refuses to get out of the car, as the house is between 2 drug houses and he does not feel it is safe to go to the hosue for the inspection. So you cannot get the ACR. Closing without the ACR, although the penalties were never enforced, allowed for prosecution of everyone involved in the transaction, including seller, buyer, realtors, asset management company, attorneys, etc., with penalties of fines AND JAIL time. So even though never enforced, most parties would not close without the ACR. More delays and depreciation of assets.
    So while banks may not be blameless, please tell me what they could have done, and should have done to avoid these houses falling into disrepair, and where the lenders lost virtually everything they lent on the properties?
    The above does not even include the pay to play mentality throughout the city to do business there.
  • FTHBGuru | | 01 Jul 2015, 01:29 PM Agree 0
    Whew! Catch a breath. That was one exhaustive read. It amazes me to no end how elected officials, presumed well-educated, mature, and fiscally responsible, could have failed the people so magnificently.
  • Born in Detroit 1951 | | 06 Jul 2015, 01:40 PM Agree 0
    The blame game goes on. First, lets put blame on the auto workers unions, putting outrageous demands on the companies causing companies to go overseas, or calling a strike with workers placing them out of work some as much as 90 to 100 days (without a normal paycheck). Secondly does anyone think that crime might have been an issue? Just look at the city leaders from Mayor the right down to the Chief of Police! Thirdly, welfare was and is to easy to get thus killing the work ethic. Now, if there is any room for blame after these items have been assigned their share of the blame, then one can assess the percentage of it to the banks. Blame should start at the top.
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