Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain

Detroit has faced a number of economic problems for years and as the economy continues to struggle on a global level, so does this city. Here is a look its current housing market with some positives but mostly some of the challenges it faces as a metropolitan city.

Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain

Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain

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Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain

Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain

Foreclosures Rising

July brought many negative data points to Detroit beginning with foreclosure notices. They continue to rise according to RealtyTrac, and now for one home in every 339, it has received a foreclosure notice.

Other data for July included 3.847 homes for sale are from foreclosures for a total of 32.007 homes and with the 5.701 homes that closed in July, there were 689 homes that were short sales.

Detroit has the greatest number of homeowners either underwater or who owe togreater amount on their loans than the value of their property. RealtyTrac disclosed that 59 percent of mortgage holders carry a loan-to-value ratio of get 120 percent or greater.

Good Time to Buy

In the Detroit's four-county area, median prices for Detroit homes dropped in June to ,000 from the previous year of $ 75,000, representing a 13.3 percent decline. Detroit was named as one of five cities where it is better to purchase a home then rent because its home prices are undervalued by 35 percent.

This may be seen as a positive as great values may be found on homes. With the last six months seeing a slight recovery in Detroit's famed automobile sector slowly, residents are looking to buy new homes--a good sign for the economy.

Moreover, there recentlyintroduced Detroit real estate owned home-buying initiative, Project 14, which has a particular incentive for police officers, is gaining interest. In early August, a home could be purchased with a down payMent of $ 1,000 with the opportunity for the police officer to receive grants up to $ 150,000 for renovations. This fills up the neighborhoods and police can live in the city.

Empty Homes Appeal to Squatters

Recently in Detroit, there have been a large number of complaints about squatters. The city has acknowledged there is a problem; however, officials are not exactly sure what can be done about it.

Detroit currently has over 100.000 empty properties and neighboring residents have seen an increase in people taking over the home, making it their own. Michigan state lawsays "the burden of proof is on the Detroit home owned by the missing mortgage holder, which makes it difficult for the squatters to leave. In addition, to get rid of them, sometimes the eviction process can take many months.

Another option is the bank can also try to remove the squatters. however, after living in the home for 15 years, Michigan state law dictates that the squatter can call their temporary home, its legal home.

Is the Market Poised for Another Collapse?

In a recent study by 24/7 Wall Street, it listed 10 cities that are poised to have a housing market collapse. Detroit was included on this list and here are the numbers that led to this conclusion.

The company forecasted an expected price drop in homes at 13.4 percent. Detroit's median family incomecomes in at ,000. Its unemployMent rate stands at 12.7 percent, well above the rate for the nation 9.2 and its median home price at $ 42,000 is the lowest when compared to 385 major metropolitan areas.

A more damaging projection number may be that Detroit's housing market will hit rock bottom in the second quarter of 2012.

Detroit's economic woes are not anything new. Ever since the beginning of the recession, the city has seen diving home values, foreclosures, vacancies, and unemployment. Its decrease in home values has a consistent decline and with its all-time lows, it may see a 13.4 percent additional decrease in 2012 's first quarter.

Detroit Reports Large Number of Rising Foreclosures and Squatters While Home Prices Decline to Gain