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Settlement lets some Detroit residents avoid foreclosure

DETROIT (AP) — The American Civil Liberties Union of Michigan and other organizations have settled a lawsuit that allows low-income Detroit individuals and families facing foreclosure to buy their homes for $1,000.

The agreement was approved Tuesday by Detroit's City Council.

Under the settlement, the city will acquire the properties of eligible applicants and sell them to a nonprofit. The nonprofit then will sell the homes back to their original owners.

The deal also makes it easier for residents to apply for a city program exempting low-income homeowners from taxes they can't afford.

ACLU of Michigan Legal Director Michael Steinberg said the settlement will prevent thousands of Detroiters from losing their homes to tax foreclosure.

The lawsuit was filed in 2016 on behalf of seven homeowners and a coalition of neighborhood groups.

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