As part of their “Detroit After Bankruptcy” coverage, ABJ took a look at one of Detroit’s most famous and historic commercial districts: The Avenue of Fashion.
ABJ profiled Detroit’s historic Conant Gardens area, as part of their continuing coverage of “Detroit After Bankruptcy.”
Here are some of the lowlights the Detroit News published as part of their multi-part special report on the foreclosure crisis:
■In Detroit, 56 percent of mortgage foreclosures are now blighted or abandoned. At least 13,000 are slated for demolition at a projected cost of $195 million. The total cost of blight is $500 million.
■More than 1 in 3 homes have been foreclosed in 10 years in Detroit, the equivalent of every house in Buffalo.
■In Detroit, homes lost to foreclosure are often never reoccupied: 76 percent of the 84,000 properties on the city’s blight list are tax or mortgage foreclosures.
■Subprime lending was rampant in Detroit. Of all city mortgages, 68 percent were subprime in 2005, compared to 27 percent statewide and 24 percent nationwide, according to federal records. Video: Understanding prime vs. subprime mortgages.
■Defunct subprime lenders Argent, Ameriquest and New Century Financial Corp. had some of the highest rates of foreclosures that later became problems for the city.
■Of those, 52 percent are now considered blighted, demolition-worthy or have been seized by Wayne County for the owner’s failure to pay taxes. Citywide, 56 percent of all mortgage foreclosures are now similarly troubled.
■Detroit-based Quicken Loans, founded by Dan Gilbert, had the fifth-highest number of Detroit mortgages that ended in foreclosure among lenders in that time period.
■Mayor Mike Duggan is searching for more federal funds to continue a blitz that demolished 3,500 buildings last year at a cost of about $15,000 per home. Tens of thousands remain.
■The Wayne County Treasurer’s Office plans this fall to auction about 30,000 Detroit properties — including about 10,000 occupied homes — that are three or more years delinquent on taxes.
■Greensboro Street in northeast Detroit is an extreme example of the impact of subprime loans and foreclosures. All but five of 38 homes on a stretch of Greensborohave gone into mortgage or tax foreclosure since 2005. Graphic: The decimation of one city block.
■Meanwhile, Detroit officials did not follow the moves of other cities such as Cleveland and Memphis, Tennessee, that sued lending institutions over predatory lending and subsequent blighted foreclosures.
■On Prest Street, many homes were foreclosed and abandoned, some more than once.
■Video: Reporters Joel Kurth and Christine MacDonald get to the heart of the issue.