Detroit is one of the cities in Michigan hardest hit by the foreclosure crisis. As of March 2009, about 20 percent or 78,000 properties were Detroit bank foreclosures. The figures are twice that much compared with the number of vacant properties in 2005.

The growing foreclosure problem in the city has brought miseries to many of its residents but strengthened the community development efforts in the area. The crisis brought out the best among neighbors who are now working to preserve and protect their neighborhoods rather than build a new one.

Detroit Vacant Property Campaign technical director Danielle Bober noted that problem with bank foreclosures has strengthened and promoted neighborhood organizations, noting the spirit of cooperation within the city.

According to reports, almost all neighborhood associations and community development corporations (CDC) in Detroit are doing something to protect their neighborhoods from the impact of the foreclosure crisis.

Throughout the city, CDCs and nonprofit organizations are offering and promoting repossession prevention counseling programs. CDCs were originally established to build new commercial and housing spaces, create revenue and growth for the neighborhood. But with the current downturn in the real estate market, CDCs decided to divert their efforts to other pressing needs.

For example, the Southwest Solution CDC offers foreclosure counseling and prevention program while the Grandmont Rosedale Development Corp. refers distressed homeowners to the Housing Opportunity Center of Southwest Solutions.

According to Southwest Housing Solutions executive director Tim Thorland, the foreclosure crisis can be solved but it will not completely go away. However, he hopes that bad loans from 2007 will stop becoming problems. He said that the organization offers counseling to every distressed homeowner and inform them of their options.

However, despite the efforts of CDCs and nonprofit organizations to prevent foreclosures, more than 78,000 properties in the city are vacant and bank foreclosures. Some neighborhoods try to help with the problem by providing maintenance on vacant properties such as keeping the grass cut.

Another neighborhood effort is the Detroit Vacant Property Campaign which provides funding to CDCs across the city to do some up keeping services on vacant houses, including cutting grass and installing solar power lights.

Neighborhoods and communities in Detroit know that the bank foreclosures crisis can be resolved if they remove vacant properties in the area and help people remain in their homes.