A HUD plan that allows municipalities to buy up foreclosed homes for just $1 is causing controversy in Wayne County, Michigan, where cities and counties are fighting over who is best suited to take over abandoned homes.
"Wayne County's plan to buy more than 700 federally subsidized and foreclosed homes in Detroit and another 500 elsewhere in the county for $1 each has hit a snag."
"Competition."
"The cities where the homes -- mostly abandoned and in disrepair -- are say the county is trying to poach what belongs to the cities."
"Many of the cities had applied or were planning to request the $1 homes when they learned Wayne County was doing the same thing. Many had plans to rehabilitate the homes, sell them to the public or employees or demolish those in the worst shape."
"The homes -- which are among 11,000 foreclosed HUD homes in Michigan and Ohio -- are another sign of the nation's mortgage foreclosure crisis. The $1 program began in 2003 to help communities fight blight. City officials know that one deteriorating vacant home on a block can begin to bring property values down for entire neighborhoods."
"'We know what's best for our community, and we're very interested in partnering with the county on counseling programs to help residents save their homes,' said Riverview Mayor Tim Durand. 'But at the end of the day, we want the houses.'"
FULL STORY: Race heats up for $1 homes
Detroit Program Keeps Homeowners Facing Foreclosure Housed
The buyback plan diverts properties from Wayne County's tax foreclosure auction, keeping them in government hands until residents can repay the purchase price.
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