Detroit files for bankruptcy

[bob10]

I saw this story on NBCNews.com and thought some might find it interesting. Bob

** Detroit becomes largest US city to file for bankruptcy **

Detroit becomes largest US city to file for bankruptcy - NBC News.com (http://www.nbcnews.com/business/detroit-becomes-largest-us-city-file-bankruptcy-6C10678946)

[ATH]

I haven't bothered reading anything about Detroit's woes as it's probably just another example of massive over spending by their elected politicians.
No doubt lots of taxpayers funds went on feel good projects so dear to all the scum ordinary people keep in soft jobs.
AlanH.

[bob10]

More on the story, Bob courtesy of BBC news

Legal battle over Detroit bankruptcy
The US city of Detroit enters a legal battle as a judge rules the federal petition for its bankruptcy violated state laws and constitution.


In pictures: Detroit rise and fall (http://www.bbc.com/news/world-us-canada-23373066)
'Sixty years of decline' Watch (http://www.bbc.com/news/world-us-canada-23384104)

[goingbush]

I think things are bad over there
just checked real-estate.com

there are 237 homes for sale UNDER $10,000 :eek:

RealEstate.com - Detroit, MI Homes for Sale, Foreclosures, Short Sales (http://www.realestate.com/listings/forsale/MI/Detroit/maxprice/10000/)

[Cobber]

Rats fleeing a sinking ship has never been more true

[Dougal]

I think things are bad over there
just checked real-estate.com

there are 237 homes for sale UNDER $10,000 :eek:

RealEstate.com - Detroit, MI Homes for Sale, Foreclosures, Short Sales (http://www.realestate.com/listings/forsale/MI/Detroit/maxprice/10000/)

But some real estate guy told me property never goes down in value.:angel:

[bob10]

I think things are bad over there
just checked real-estate.com

there are 237 homes for sale UNDER $10,000 :eek:

RealEstate.com - Detroit, MI Homes for Sale, Foreclosures, Short Sales


It's the squatters with the right to bear arms that may turn buyers off. Bob

[Sitec]

I've had a fascination with Detroit for a few years now, and seeing this has only served to fuel the curiosity... So tempting to take a punt on 3 or 4 of those cheep houses and sit back and see where the city goes.. Who knows, 15 yrs time and it could be thriving, and if it isn't, not a lot lost! Anyone wanna do the same??

[goingbush]

I've had a fascination with Detroit for a few years now, and seeing this has only served to fuel the curiosity... So tempting to take a punt on 3 or 4 of those cheep houses and sit back and see where the city goes.. Who knows, 15 yrs time and it could be thriving, and if it isn't, not a lot lost! Anyone wanna do the same??

Would be fine if you could just sit back and see what happens but you might need some professional help to decipher all this.
Taxes - Property Tax (http://www.michigan.gov/taxes/0,4676,7-238-43535---,00.html)

I see the $1 house is still there
RealEstate.com - 4700 SAINT CLAIR, DETROIT, MI 48214 (http://www.realestate.com/detail/340-31145093-4700-SAINT-CLAIR-DETROIT-MI-48214/)

and if you check street view its certainly not the worst house in the street
https://maps.google.com/maps?q=4700+SAINT+CLAIR,+DETROIT,+MI+48214&hl=en&ll=42.381975,-82.991045&spn=0.002076,0.009098&sll=42.382020,-82.990902&layer=c&cbp=13,65.42,,0,4.72&cbll=42.381974,-82.99104&hnear=4700+St+Clair+St,+Detroit,+Wayne,+Michigan+4 8214&t=m&z=17&panoid=meJUaajkIN0Sl5gD9ToUnw

[Chucaro]

If people are leaving the city perhaps it would be a good policy option to send the boat people to Detroit instead of Papua New Guinea.
Just an idea for the opposition :angel:

[Bigbjorn]

This is what happens when you move your industries to Mexico, Brazil, China. What happens when your white employed tax paying middle class flee to the suburbs when certain welfare and crime dependent ethnic groups move to the city. Detroit's population has gone down from 1.8 million to 680,000. The city has lost much of its revenue base. White flight has happened in other major industrial cities in the USA. Cleveland and Gary being notable. Then you have cities like Dayton where 13 GM component plants have been closed, NCR & IBM have left. Steubenville, Ohio, had one industry, steel. No steel plants left there now and the city is a disaster area.

[goingbush]

Speaking of Gary Indiana, was reading a book the other day about "Places you Dont want to visit" , its is officially a US Ghost Town !!

Gary, Indiana may be cut in HALF to save it from destitution | Mail Online (http://www.dailymail.co.uk/news/article-2344438/Gary-Indiana-cut-HALF-save-destitution.html)

[Eevo]

adelaide wont be far behind

[Chucaro]

This is what happens when you move your industries to Mexico, Brazil, China. What happens when your white employed tax paying middle class flee to the suburbs when certain welfare and crime dependent ethnic groups move to the city. Detroit's population has gone down from 1.8 million to 680,000. The city has lost much of its revenue base. White flight has happened in other major industrial cities in the USA. Cleveland and Gary being notable. Then you have cities like Dayton where 13 GM component plants have been closed, NCR & IBM have left. Steubenville, Ohio, had one industry, steel. No steel plants left there now and the city is a disaster area.

Brian that is the side effect of the globalization idea which it was implemented by the "economist gurus in this world.
The same thing happens here in Oz in Port Kembla and other places :(
Many people blamed Hugo Chavez when he nationalized the oil and other industries in Venezuela but IMO he was right.

[Didge]

adelaide wont be far behind
I'm sure GOD will save the city of churches :angel:

[bob10]

There's a few of them, Bob. [ right click on the envelope.]


https://www.aulro.com/afvb/images/imported/2013/07/422.jpg (http://www.governing.com/gov-data.rss)

Bankrupt Cities, Municipalities List and Map





https://www.aulro.com/afvb/images/imported/2013/07/423.jpg (http://www.governing.com/gov-data/municipal-cities-counties-bankruptcies-and-defaults.html#)




UPDATED: July 18, 2013
Many local governments across the U.S. face steep budget deficits as they struggle to pay off debts accumulated over a number of years. As a last resort, some filed for bankruptcy.
Governing is tracking the issue, and will update this page as more municipalities seek bankruptcy protection.
Most recently, Detroit became the largest municipality in U.S. history to file for bankruptcy. The state had already appointed an emergency financial manager for the city, saddled with debts totaling an estimated $18 billion.
Overall, though, bankrupt municipalities remain extremely rare. A Governing analysis (http://www.governing.com/blogs/by-the-numbers/municipal-bankruptcy-rate-and-state-law-limitations.html) estimated only one of every 1,668 eligible general-purpose local governments (0.06 percent) filed for bankruptcy protection over the past five years. Excluding filings later dismissed, only one of every 2,710 eligible localities filed since 2008.

The majority of filings have not been submitted by bankrupt cities, but rather lesser-known utility authorities and other narrowly-defined special districts throughout the country. In Omaha, Neb., 10 sanitary districts have filed for bankruptcy, accounting for nearly a third of all Chapter 9 filings since 2010.
It's also important to note that only about half of states outline laws authorizing municipal bankruptcy. View our bankruptcy laws map (http://www.governing.com/gov-data/state-municipal-bankruptcy-laws-policies-map.html) for each state's policies.

List of Bankruptcy Filings Since January 2010

All Municipal Bankruptcy Filings: 36

City and Locality Bankruptcy Filings (8):
-- City of Detroit
-- City of San Bernardino, Calif.
-- Town of Mammoth Lakes, Calf. (Dismissed)
-- City of Stockton, Calif.
-- Jefferson County, Ala.
-- City of Harrisburg, Pa. (Dismissed)
-- City of Central Falls, R.I.
-- Boise County, Idaho (Dismissed)

[solmanic]

Would be fine if you could just sit back and see what happens but you might need some professional help to decipher all this.
Taxes - Property Tax (http://www.michigan.gov/taxes/0,4676,7-238-43535---,00.html)

I see the $1 house is still there
RealEstate.com - 4700 SAINT CLAIR, DETROIT, MI 48214 (http://www.realestate.com/detail/340-31145093-4700-SAINT-CLAIR-DETROIT-MI-48214/)

Correct me if I'm wrong, but once you buy a house for $1, then the taxable value of that house is based on that purchase price (ie. 50% of $1 or practically nothing). Consequently you would stand to benefit even more if land values ever started to increase as your property tax would be climbing at a smaller rate than the land value.

Part of the problem is that those people who defaulted on loans have been paying property tax set by a much higher land value when they bought.

[goingbush]

Sounds too good to be true. There are probably caveats like the Gary city is proposing to sell houses for $1.00 but you must renovate the house as part of the deal.

I'd be more worried about insurance, say somone injured themselves breaking in could they sue the owner ?? Even if you bulldozed the house and left a vacant block, people would dump rubbish & cars there, would the owner be liable then ??

Must be some reason why the entrepeneurs in USA are not snapping them up

Meybe an AULRO group buy, buy a whole street ??

Even a whole town,

heres one in the UK :)
All yours for £1.75millon: Entire village for sale includes a haunted castle, a Lordship title, 70 homes and approval for a holiday park | Mail Online (http://www.dailymail.co.uk/news/article-2138928/All-1-75millon-Entire-village-sale-includes-haunted-castle-Lordship-title-70-homes-approval-holiday-park.html)