City of Detroit auctions 9000 properties; Only 20% sell

detroit ghetto

“Why am I competing against a bank?” — Wallace, Detroit Resident.

Detroit’s problems are easy to identify. It was the first “white flight” that had to do with the integration of school districts. This has led those who could afford to leave it outside the city limits or in private schools. Communities have continued to spread further that pushed the majority of the population more and more out of the city. It began at 8 mile rd in the 1970s and is now about 26th mile.

As more than half the population to leave the outskirts of the city you’ve had a massive reduction in manufacturing jobs caused mainly by slave labor countries like China, bad management practices, and bad management practices of the Big three automotive manufacturers. The main problem that cannot be stressed enough is the offshoring of America’s manufacturing capability from the 53 percent of the percentage of the economy in 1965 to the less than 10 per cent we have now. Essentially Detroit became the epitome of the term “de-industrialization.”

Finally, you have a city that refuses to realize he has lost most of its population and cannot continue to offer the same services as before. One can not overstate how much money is wasted by the city every day by the utilities. DPW (Detroit Public Works) drive cars all day without real purpose. The list goes on and on. The problem has gotten so bad that the city has reverted to privatizing public corporations and agencies to private management companies which has been detailed on this site in the past.

Detroit house auction flops for urban wasteland
Story provided by ForexYard

DETROIT, Oct 25 (Reuters) – In a crowded ballroom next to a bankrupt casino, what remains of the Detroit property market was being picked over by speculators and mostly discarded.

After five hours of calling out a drumbeat of “no bid” for properties listed in an auction book as thick as a city phone directory, the energy of the county auctioneer began to flag.

“OK,” he said. “We only have 300 more pages to go.”

There was tired laughter from investors ready to roll the dice on a city that has become a symbol of the collapse of the U.S. auto industry, pressures on the industrial middle-class and intractable problems for the urban poor.

On the auction block in Detroit: almost 9,000 homes and lots in various states of abandonment and decay from the tidy owner-occupied to the burned-out shell claimed by squatters.

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The stakes in the debate are rising.

The number of Detroit properties in tax foreclosure has more than tripled since 2007 and seems certain to rise further. The lots for sale last week represented arrears from only 2006, well before the worst of the downturn for U.S. automakers.

“We have to keep in mind that GM and Chrysler filed for bankruptcy this year,” said Terrance Keith, chief deputy treasurer of Wayne County. “Some people are going to be totally tapped out next year.”

Detroit, already stuck with a $300 million budget deficit, is responsible in the meantime for cutting the weeds and responding to fire calls for thousands more abandoned lots.

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Wallace, 27, said he did not want to leave his fiancee and two children with a mortgage before shipping out to Iraq later this year.

“I still have student loans and I’m trying to be responsible. I don’t want to leave debt,” he said.

Wallace waited for the auction to roll around to Detroit’s Boston-Edison district, a once stately area that was home to boxing legend Joe Louis and Motown founder Berry Gordy.

But he was quickly outbid. An unidentified investor at the front of the room who had scooped up several dozen properties took the home Wallace wanted for about $15,000.

“Why am I competing against a bank?” he said later. “It would be common sense to have a separate process for people who want to move back to the city or it’s going to stay empty.”



The Bamboozled Generation

By PushingHamburger

Are you being stimulated into poverty?

Today’s generation has been so well inundated with lies from an out of control government that they can no longer tell which is up or which is down.

They no longer have the slightest idea of what it was to be a middle class family. They are far removed from the truth that not too long ago their parents lived in a more gentile time, a time when dad worked, mom took care of the home and children, there was job security, some money in the bank and the future for their children was to live in a world that was even better than theirs.

They have been bamboozled into accepting that it’s OK for their children to grow up without the proper supervision of either parent, its OK to be hopelessly ensnarled in credit card debt, it’s OK to live from paycheck to paycheck, it’s OK to live under the constant job insecurity, it’s OK etc. etc.

Here is a perfect example of what a secure job and the money earned was like in your parents time.

A middle class single earner family with an income of $150.00 a week lived in a fair sized home ( over 2,000 sq. feet ) That cost under $10,000 with a mortgage of $90.00 or less. That included interest, amortization, taxes and insurance. Percentage wise ( the proper way to evaluate then and today ) that consumed approximately 15% of income.

Today the average couple is struggling with mortgages that are consuming 50% or more of their income. The above example can be extended to the cost of feeding a family, medical expenses, transportation, college costs, taxes and every other aspect of family life. So why hasn’t this bamboozled generation fought back and taken this entrapment seriously?

It’s the fairy tale syndrome. They just can’t comprehend what was and what has been denied to them.

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