Money Allocated to Deal with Foreclosure in Detroit

A proposal made by planners in Detroit would see over 2,000 houses demolished in order to provide help with the current foreclosure crisis.

According to the Detroit Free Press, Mayor Ken Cockrel's administration would provide $47 million in funds from the federal government to demolish old houses and build new ones in a bid to rejuvenate the property market.

Douglass Diggs, director of the planning and development department, said: "The goal of this program is to stabilize property values."

Some 67,000 foreclosures have occurred in Detroit since 2005, the news provider attests.

If the plan is approved, work would start on February 20 on nine neighborhoods in the city.

Foreclosure is the legal proceeding in which a mortgagee, or other lien holder - usually a lender - obtains a court ordered termination of a mortgagor's equitable right of redemption.