• Lisa Simpson
• Jul 1,2009
• In: Repo Homes

Detroit Repo Homes

Detroit City is the largest in Michigan State and is in Wayne County. Once it was the international automobile capital. But today the name of the city is linked with foreclosures that have led to countless Detroit Repo homes.

By Repo homes means those houses that have been taken over or repossessed by the banks after failing to be sold at foreclosure auctions. A wave of foreclosures has been sweeping across USA primarily triggered by the sub-prime mortgage meltdown. But in Michigan foreclosures have been knocking even before this thanks to the collapse of the auto industry. The sub-prime crisis has only worsened matters and has led to the blight of Detroit Repo homes. The local government is stressed addressing problems arising from these vacant Detroit Repo homes. The sub-prime crisis has only worsened matters.

Foreclosures following unemployment have caused an exodus of the population from Detroit. During the first few years of the previous century people came in droves to participate in the thriving bang of the automobile industry. Today it is the reverse – people are moving away from Detroit.

The foreclosures auctions are failing to sell of the houses because of supply far outstripping demand. The banks are overwhelmed with so many Detroit Repo homes that they are failing to handle the matter. Most of these Detroit Repo homes are lying vacant inviting crime and disease.

The Detroit Repo homes are being sold for a song – around $10,000. The original purchase price was ten times more than this. In some cases these are being sold for $1!

Buyers are flocking from distant places to reap this bounteous harvest of Detroit Repo homes. Apart from buyers honing in from UK, Australia and Europe bulk purchases are being made by speculators coming from other states in USA. Lots consisting of 50 to even 1,000 houses are being snapped. Not a single decent property is missing their roving eye. This type of frenetic buying has somewhat pepped up the housing market. Detroit is being targeted by investors because of the sheer number of houses clustered in one area and the staggering low prices.

The government at all levels together with non-profit organizations is doing their best to contain the crisis. A third of the population is at the present below the standard poverty line. Crime has become rampant and a pall of gloom has descended over Detroit that is frustrating all remedial measures.

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