The many foreclosed homes of Detroit are currently without a plan for the future, and city officials decided it was time to step in. Fannie Mae has started a partnership with Detroit to either demolish or renovate many of the vacant or foreclosed homes in the city. This community outreach is in conjunction with Fannie Mae’s dedication to help rehabilitate some neighborhoods in Detroit, especially those who have seen the worst in foreclosure history.
For the first order of business, Fannie Mae will be purchasing nearly 45 foreclosed homes in Detroit, and sell them to the Detroit Land Bank Authority. With a reduced selling price, Fannie Mae will then place the earned funds into some of the remaining homes, either to demolish or renovate. Luckily, Fannie Mae has seen the worth in many of these foreclosed home, and have plans to rehabilitate over 25 of the initial lot.
Fannie Mae’s Vice President of Alternative Dispositions, P.J. McCarthy, has emphasized to city officials that these vacant homes are only doing harm to the existing neighborhoods and homeowners across the city. McCarthy has also explained that Detroit can expect full cooperation from Fannie Mae, in the assistance of ‘transforming’ these current homes into desirable properties once again. Additionally, Fannie Mae has encouraged that some of these properties be renovated for new purposes, such as community organizations and centers.
The Detroit Land Bank Authority has been tackling the issue of blight in Detroit with full force. Recently, the Land Bank gained over 6,000 foreclosed properties from a connection between the city of Detroit and Herb Strather, casino owner and real estate mogul. The Land Bank has made a promise to renovate these homes, as they were originally attempted to be sold for demolition, that ultimately fell through. As the costs for demolition continue to increase, the Land Bank has been looking for other alternatives and methods to keep these homes functional.
The Detroit Land Bank Authority has expressed great excitement while working with Fannie Mae and hopes that this partnership will flourish in the coming months. Likewise, with a common interest in revitalizing the neighbors of Detroit, the Land Bank believes that Fannie Mae’s professionalism in the city will help take care of every vacant home in the city of Detroit. The Land Bank is ready to stabilize Detroit, and looks forward to rapid progress in the near future.