Among the many states that are suffering from the foreclosure crisis that has hit the country, Detroit is in the worst shape. Detroit used to be the state with the highest rate of home ownership in the nation due to the booming auto industry at its center. Now, it is the same auto industry that has caused a staggering spike in Detroit foreclosure homes over the past years. Nearly 5% of the households in Detroit are in various stages of foreclosure. Analysts surmise that this rate is because of high unemployment, loss of high-wage jobs, the impact of subprime loans and inability of the homeowners to keep up with their adjustable-rate mortgages.



It's hard to believe just how much the effect of Detroit foreclosure has on the community. Picture this. A house in Detroit just got sold for $1 and it even took 19 days to find a buyer and close the deal. The house used to belong to a family until they folded due to foreclosure and the house they left was pillaged by looters and desecrated by vandals over time. The bank listed it for $1 just to get rid of it, not even minding that they had to pay an additional $10,000 just to unload it. Detroit foreclosure bus tours now have schedules around communities that are mostly bank-owned, vacant and in various states of neglect but still capable of moving people's (especially bargain hunters?) interests.

What is being done? Detroit recently came into $47 Million out of the federal government's pockets to aid bankers and lenders fix up and sell foreclosed properties. This does not really help the homeowners themselves which is why the Detroit city council is asking for a nationwide moratorium on foreclosures for at least 2 years and to create WPA-style of jobs for heads of households in Detroit. New personalities were also hired to head and be part of the Foreclosure Prevention Office in Detroit. Everyone is just adopting a wait-and-see approach as of this time.