Are 'deadbeat banks' to blame for Detroit's crisis?

Full story: MLive.com 10
Thousands of vacant, deteriorating homes across the city and the property tax decline caused by their abandonment are a major part of Detroit's massive struggle. Full Story
Skeeter

Romulus, MI

#1 Mar 13, 2013
How can you make an old city new again ever when everything is made in China !
Faith

New Baltimore, MI

#2 Mar 14, 2013
I'm thinking it was the coloreds.
Deadbeat Writers

Miami, FL

#3 Mar 15, 2013
Yeah sure, if only banks had made foreclosed homes look pretty, then Detroit's problems with unemployment and deindustrialization and crime would just vanish. MLive is written by MSimpletons.
Pete

Livonia, MI

#4 Mar 15, 2013
Most municipalities around here experienced the home foreclosure crisis and reduced property tax base. Still, they went out and collected the taxes before the homes got five years in arrears. They also had to adjust their expenditures by cutting things.

According to reports, half the Detroit taxes are unpaid and have been for years.
Faith

New Baltimore, MI

#5 Mar 15, 2013
Pete wrote:
According to reports, half the Detroit taxes are unpaid and have been for years.
They just figured the rest of Michigan would pay their bills......Like always.
Pete

Livonia, MI

#6 Mar 15, 2013
Faith wrote:
<quoted text>They just figured the rest of Michigan would pay their bills......Like always.
That might fit some stereotype, but it's not the case. It begins with poor management of the tax auditing department. When people don't pay they need to begin the foreclosure process as soon as legally possible. When people know there is no immediate penalty, it only makes sense to them to live in the house for free as long as possible. In the sense that the city would suffer, yes, other Michiganders do pay, but those are Detroit Michiganders who will pay the price in terms of poor city services.

Let's see what this guy Orr comes up with. So far the idea of outstate money to help has not been part of the plan. There may be some loan guarantees backed by water and tax income, but there is no net loss there if all goes well. In bankruptcy, which is quite likely anyway, then state pension fund guarantee money would come into play and those costs would be socialized to all in the state.

“American Dreamer”

Since: Mar 13

Location hidden

#8 Mar 21, 2013
Even if the taxes had been properly collected in a timely manner the current blight would still exist. It is stereotypical to blame it all on freeloaders. Speaking in absolutes is rarely accurate. The problem is complicated- sure, unpaid taxes contributed but so did the incredible amount of job losses. It is not necessarily true that everyone who lost their homes to foreclosure expected everyone else to pick up the bill- some were victims of mortgage brokerage fraud. Many other factors may have contributed to the collapse like death in families, divorce, long term unemployment, etc. Many people feel strongly about paying their own way but meet up with overwhelming circumstances over which they have little control. Yes- the deadbeats and freeloaders exist too, but to blanket define the whole mess as such is not constructive to solving the issue: how to attract home buyers to change the blighted areas to thriving neighborhoods. Tax collection reforms won't be enough- there has to be attractive wages available, low home prices, available financing, good schools, etc. Its going to need risk takers who are willing to make the initial investments that may take a long time to realize profits.
Some information that might help: The National Mortgage Settlement provides help for borrowers and for those who lost their homes due to foreclosure (between 2008 and 2011). The Making Home Affordable Program may help as well. For info on the settlement see the Dept. of Justice website. For info on the Program go to the url- http:/www.makinghomeaffordable .gov
Skeeter

Romulus, MI

#9 Mar 21, 2013
americandreamsaver wrote:
Even if the taxes had been properly collected in a timely manner the current blight would still exist. It is stereotypical to blame it all on freeloaders. Speaking in absolutes is rarely accurate. The problem is complicated- sure, unpaid taxes contributed but so did the incredible amount of job losses. It is not necessarily true that everyone who lost their homes to foreclosure expected everyone else to pick up the bill- some were victims of mortgage brokerage fraud. Many other factors may have contributed to the collapse like death in families, divorce, long term unemployment, etc. Many people feel strongly about paying their own way but meet up with overwhelming circumstances over which they have little control. Yes- the deadbeats and freeloaders exist too, but to blanket define the whole mess as such is not constructive to solving the issue: how to attract home buyers to change the blighted areas to thriving neighborhoods. Tax collection reforms won't be enough- there has to be attractive wages available, low home prices, available financing, good schools, etc. Its going toSome information that might help: The National Mortgage Settlement provides help for borrowers and for those who lost their homes due to foreclosure (between 2008 and 2011). The Making Home Affordable Program may help as well. For info on the settlement see the Dept. of Justice website. For info on the Program go to the url- http:/www.makinghomeaffordable .gov
excuse me but maybe it's still 1943 around here ?
Mr White

Anonymous Proxy

#10 Mar 21, 2013
Skeeter wrote:
<quoted text>excuse me but maybe it's still 1943 around here ?
Does this mean we're having a riot this year?

Bring back the B-29 Superfortress! We may need it.
Skeeter

Romulus, MI

#11 Mar 21, 2013
Maybe there was a pole shift on Dec.21 2012 and winter won't leave ?

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