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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Tag: Foreclosure

Foreclosures and Tax Sales – Detroit

Detroit needs residents, but sends some packing: By Monica Davey, June 26, 2014, New York Times: “Ronald Ford Jr. has watched neighbors move away and brick houses on his family’s block crumble to nothing, but he says he wants to stay put and give a chance to city leaders who now promise a renaissance. ‘I’d like to try to go with the new Detroit if that’s really coming,’ Mr. Ford, 49, said, standing outside the house on the city’s east side that he describes as precious, ‘like a family heirloom.’ Yet as Mike Duggan, the mayor of the nation’s largest bankrupt city, pledges to stem the flood of departures that have crippled Detroit and to begin increasing the city’s population for the first time in decades, Mr. Ford is on the verge of losing his family’s house. So are tens of thousands of others here who failed to pay their property taxes. In a city that desperately needs to hold onto residents, there is a virtual pipeline out. At least 70,000 foreclosures have taken place since 2009 because of delinquent property taxes. . .”

Affordable Housing

Obama administration expands affordable housing plan, By Elvina Nawaguna, June 26, 2014, Reuters: “The Obama administration said on Thursday it would tap Treasury funds to bolster the construction of affordable rental housing and extend the life of a program aimed at helping homeowners avoid foreclosure. The announcement by Treasury Secretary Jacob Lew was timed to coincide with the fifth anniversary of the Making Home Affordable program, an Obama administration initiative launched at the height of the economic crisis in 2009 to revitalize the housing sector and curb runaway foreclosures. He said the program would be extended through December 2016. ‘We need to continue to be there for homeowners who are facing foreclosure, those who are struggling with increasing interest rates on their modified mortgages, and those whose homes are caught underwater. . .”

Detroit Free Press Series on Homeless Students

  • Michigan’s homeless students: Foreclosure crisis takes toll on 31,000 kids, By Jeff Seidel, December 18, 2011, Detroit Free Press: “Like a silent epidemic, the number of homeless children in Michigan schools is growing. In the 2010-11 school year, more than 31,000 homeless students attended school — 8,500 more than in the previous school year, a 37% spike attributed to the weak economy, loss of jobs and the foreclosure crisis. Overall, the number of homeless students in Michigan has jumped more than 300% in the last four years. Most experts say those numbers are low because many parents are embarrassed to admit they are homeless. And many school districts lack the resources to identify these kids, as required by federal law. Advocates say there’s also a disincentive to find homeless children. Once a district finds them, it has to pay to transport them to school and provide other services — a tough job for many cash-strapped districts. School officials who deal with these children say the numbers are likely to grow next year because of the thousands of families who have lost jobless benefits and other cash assistance…”
  • For Michigan’s homeless students, a storage room of backpacks shows community support, By Jeff Seidel, December 19, 2011, Detroit Free Press: “The small cluttered motel room is filled with all their worldly possessions — bags of clothes from a free clothes locker, a fistful of utensils standing up in a Mason jar, a deep fryer, a toaster oven, a Crock-Pot, a box of food donated from a nearby church, and a backpack that links thousands of homeless children across Michigan. The backpack was given to 11-year-old Amber Phillips by the Macomb Intermediate School District because she is a homeless student. She has been living in this motel for two months..”
  • Covenant House is a haven for Michigan’s homeless students, By Jeff Seidel, December 20, 2011, Detroit Free Press: “Even before the downturn in the economy, there were thousands of homeless children across the state — kids who ran away from home because of family squabbles or because of abuse or because of myriad other reasons. Some children now might have a new reason to run away. ‘Now, we are seeing kids who leave home because they feel their parents can’t afford them anymore and they feel like, ‘I have to go on my own and spare them paying for me,” said Pamela Kies-Lowe, the state coordinator for Homeless Education at the Michigan Department of Education. ‘They are trying to be magnanimous to their families. They strike out on their own and figure out they can’t make it.’ She said even those who leave for reasons of abuse might have an underlying tie to the economy…”
  • Love from new families turns lives around for Michigan’s homeless students, By Jeff Seidel, December 21, 2011, Detroit Free Press: “Traverse City and Adrian are running two of the most unusual programs in the state to help homeless children — families taking in a homeless child for a year so he or she can finish high school. It’s an idea that could be replicated around the state to help agencies already besieged by too many people who need help and not enough money to go around. In both cities, homeless children are placed in mentor homes for the entire school year. Last year, 15 students were in the Traverse City program; all seven seniors graduated. In Adrian, 13 children were in the program last year and all of them also graduated from high school, including two valedictorians. Beth McCullough, who runs the Adrian program, said 87% of the homeless students in the program have gone on to higher education…”