Take this for example

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.”

As an investor, note

1. there are people who want to live in the city
2. you can’t just buy and hold and SIT in the real estate market in Detroit, You have to buy with a plan. Otherwise, you don’t have an investment, you have a liability.

Read the rest of the article here.

Hazel Park, Eastpointe and Pontiac all had higher rates than Detroit, according to a Free Press analysis of metro area foreclosures over the past 3 1/2 years.

Read the rest of the story in the Detroit Free Press

I Will Stay If…

Heritage properties suffered from a bum rap in the past. People have been reluctant to purchase a piece of the past due primarily to expense of dragging it into the present. Lately, however, these older properties have been recognized for their historical value and  beauty and have even become a hot commodity. Yes, there is often work to be done on historical properties, but you actually have some financial incentives for restoring these properties to their former glory.

First, restorations create jobs. Second, the finished product is culturally significant, making it a draw for tourism and improving the quality of a neighborhood over all.

Third, there are tax credits involved on a local and federal level.

Historic districts in the city of Detroit that are viable for real estate investing–because they or going through a resurgence : Boston-Edison, Virginia Park, Brush St. (Wayne State University district), Indian Village, and Palmer Park.

For starters, you don’t have to move right away. And if you work out a payment arrangement with your lender, there’s still a chance you can stay in your home.

Helpful information for those in trouble. Good information for the real estate investor. Know the process and what you’re getting into. In general, in the Detroit area,

• the owner can miss up to 3 mortgage payments before action is taken
• there is still time to redeem the house up to the sheriff’s sale
• even after the sheriff’s sale, the 6 month redemption period allows one to buy back their home

Read more in the article “Foreclosure doesn’t automatically mean eviction“.

The vast majority of those parcels are vacant lots in Detroit, he said, and most are unlikely to find buyers at the annual tax auction.

What can you do with this?

1. Obviously this is an opportunity for bargain basement prices on properties. Don’t forget, not all foreclosed property is in a bad neighborhood. Some are in very desirable areas.

2. Even with some of the land vacant, there may be opportunities for development. You have to find out what is slated for development in the surrounding areas. There are corporations also taking advantage of low-prices. Would you be willing to buy a piece of residental property near a commercial development?