The housing slump in Detroit has attracted many potential buyers. They see great potential in the city for many reasons. Detroit is the 11th largest metropolis and the heart of the American automotive industry. New industries have made Detroit their home. Even Hollywood has found a home in the city with many production companies headquartered and shooting films in Michigan. With many new programs, advances, and initiatives Detroit is destined for significant rebirth and growth. This in turn will have a domino effect on Detroit’s economy and property values will again increase.

With many homes being repossessed by lenders, homes in Detroit can be purchased for pennies on the dollar. Solid brick homes in great neighborhoods are readily available on the open market. Because these properties are being sold so inexpensively, the potential for positive cash flow is inevitable. Single family home values will also experience long-term capital growth over the course of the next 5 to 10 years. A prospective investor can recoup his initial investment within the first years of owning a property.

Property values are low and investors can afford to purchase a fully refurbished, income producing property without financing. Most investors have a savings account, an investment fund or a retirement account and retrieve funds from their reserve. Property taxes in the city on average work out to roughly 3,500 USD annually. After acquisition costs, fees, property taxes, and property management fees ROI’s can range from 11% to 18%. While many US banks have tightened the reigns on lending on non-primary residential properties, foreign banks are continuing to lend. According to the BBC, “In 2010, buy-to-let (BTL) lending rebounded, with lenders granting 102,400 new BTL loans, 10% more than in the year before. In 2009 the number of new BTL mortgages had fallen by nearly 60% from 2008.”

Through the years, the declining job market in Michigan has been prompting many homeowners to put up their properties under foreclosures. Many homeowners fail to repay mortgages, taxes and amortizations to housing financings. Mortgage lenders and government institutions are forced to foreclose properties. In Detroit, because the major car manufacturers in the city are laying off thousands of employees, many homeowners fail to diligently and responsibly pay for home loans. Thus, the number of foreclosures continues to grow.

Because there are just too many foreclosures available in Detroit, many foreclosure listings also arise. You will not have a hard time finding any of those listings. They may flood across the Internet. Some Detroit foreclosure listings may require memberships and subscription fees, while others are freely circulated. You may use any of the listings and find suitable foreclosed homes that fit your requirements and standards.

You could also ask your property agent about such Detroit foreclosure listings. Real estate agents should be able to refer or recommend several foreclosure listings. They should know more than anyone else that you as a homebuyer should be provided with as many available options possible. For your part, you should make sure you check out multiple Detroit foreclosure listings so you could find foreclosed homes for sale in areas of interest.

Many homebuyers and home investors are enjoying a feast these days because there are just too many foreclosed homes available in the market. Detroit is one of the major cities where the number of home foreclosures is constantly rising. When browsing through Detroit foreclosure listings, do not forget to check for updates. You may be looking at an outdated list. Refresh your computer or ask for newer or latest list editions.