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Detroit has recently launched a website to auction off the vacant homes forced into foreclosure. It’s part of the city’s continuing efforts to boost home values and fight blighted areas.
The website, BuildingDetroit.org was launched this Monday and has 15 listings for properties and auctioning will begin on May 5, with one property being auctioned each day. Opening bids for properties start from as little as $1,000, but potential buyers have to be prepared to step in and renovate the home so it can be occupied within six months. If they fail to do so, then they will lose their money and the house.
Detroit’s mayor acknowledges that these are aggressive measures to help rehabilitate abandoned homes and to get them occupied by families. The hope is that buyers will find it much easier to make a commitment to renovating the property if they know other people are going to be buying and renovating other vacant homes in the area at the same time.
The article in CNN Money points out that neighborhoods in Detroit were hard hit during the foreclosure crisis and many areas are struggling to recover. At the moment the city owns 16,000 homes that …read more