Fannie Mae gives Detroit 44 houses
Detroit — Fannie Mae is giving Detroit 44 of its foreclosed houses, along with $15,000 apiece for 18 of the properties that need to be demolished.
The deal with the Detroit Land Bank, announced Monday, is the first group of surplus foreclosed properties Fannie Mae plans to give Detroit. The goal is for most to be sold to qualified buyers who can rehabilitate them and the rest be demolished.
“Vacant properties are a strain on the neighborhood and can depress property values for other homeowners,” P.J. McCarthy, Fannie Mae’s vice president of alternative dispositions and real estate asset management, said in prepared remarks.
“It is our goal to continue to work closely with local organizations to help bring life back into these neighborhoods.”
The Cuyahoga Land Bank in Ohio has had a similar agreement since 2009 with Fannie Mae, a government-controlled mortgage financier. It has taken possession of nearly 980 properties, with the goal of renovation or demolition.
The Detroit Land Bank is now in negotiations with several other banks to broker similar deals for their vacant foreclosed houses.
“This deal with Fannie Mae is a very important piece of the Detroit Land Bank’s larger strategy to stabilize neighborhoods through our auction program, demolition, and side lot sales,” said Detroit Land Bank Authority Kevin Simowski said.