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Detroit's Home Auction Program Bumps Up Against Serious Problems

January 23, 2015, 7:07 AM

There was certain giddiness last May when the city of Detroit launched a home auction program to help improve neighborhoods. Now reality has set in.

Some buyers struggle with financing, Christine Ferretti of The Detroit News writes:

Detroit Mayor Mike Duggan set out with the goal of auctioning around 400 abandoned homes by the end of 2014 and met it, with a final tally of 394 on Dec. 31.

But seven months into the program, figures show that sales had closed on just over a third of the properties, 37 others were delayed, and several dozen had fallen through, according to the Detroit Land Bank Authority.

Of the properties auctioned, 295 had bidders who made legal disclosures and signed purchase agreements. Buyers had closed on only 138 properties.


Read more:  The Detroit News


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