Many Americans are losing their homes to foreclosures and many states are losing tax revenue. Some states are begging for homebuyers. Michigan has had 119,134 foreclosures so far in 2009. However, compared to California's 841,947 or Florida's 484,635 it doesn't seem so bad.
Detroit had 9,000 home up for auction in their tax sale last week for properties with unpaid taxes in 2006 with more homes in 2007 and 2008. Unfortunately, there are only a small number of buyers, even though the minimum bid was a mere $500.
Since 2007, the total number of Detroit properties in tax foreclosure has more than tripled and may continue to increase. Detroit currently has a $300 million budget deficit.
Bidding on homes at an auction takes skill and money. The average person usually doesn't have enough money to bid against investors and usually becomes frustrated after attending just one auction. Investors can go anywhere in the country and buy properties at several venues. However, there are only a few venues where average residents can purchase foreclosed homes or homes that owe unpaid taxes.
Cities and states should have auction for non-investors only. This will increase the turnouts to the events and help those who want to become homeowners find a low priced home. Once residents start returning to abandoned neighborhoods it creates a ripple effect: crime decreases, residents take pride in their neighborhoods, tax revenues increase for the city, property values increase, and community outreach programs can be developed to help residents of the community.
No comments:
Post a Comment