Fannie Mae, the national leader in providing money for the secondary mortgage market, said today it will sell 44 Detroit properties it acquired through foreclosure to the Detroit Land Bank Authority.
The land bank will demolish some of the properties and sell others to the public through its online auction site buildingdetroit.org.
“Vacant properties are a strain on the neighborhood and can depress property values for other homeowners,” said P.J. McCarthy, Fannie Mae’s vice president of Alternative Dispositions and Real Estate Asset Management. “We are happy to partner with the Detroit Land Bank Authority to help transform these properties into homes for local families, or new community spaces.”
Additional sales to the Detroit Land Bank are likely, he added.
“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. “The Detroit Land Bank is working with multiple financial institutions on similar deals so we can address every vacant house in our target neighborhoods.”
In a similar vein, Fannie Mae has been working with the Cuyahoga Land Bank in Ohio since 2009 to address the vacant property issue in Cleveland, efforts that involved more than 1,000 foreclosed properties.
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