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Gm To Add More Homes To Foreclosed Home Auction Inventories}

Monday, May 29th, 2017

GM to Add More Homes to Foreclosed Home Auction Inventories


Joseph Smith

The bankruptcy filing by 100-year-old U.S. auto giant General Motors is expected to close car dealerships, eliminate more jobs and add more distressed homes to foreclosed home auction inventories across Michigan and other states.

Long before there were foreclosed home auction inventories in California, Florida, Nevada and other foreclosure-battered states, lenders had been foreclosing homes in Michigan since 2005 as the auto industry struggled to sustain its operations. Real estate agents even observed that many houses in foreclosed home auction inventories in some parts of Detroit were selling at price levels lower than the prices of new cars.

Now that GM has filed for bankruptcy, another round of foreclosures is expected to fill foreclosed home auction inventories in the Detroit area, especially in suburban areas.

The situations of struggling commercial real estate projects and related businesses are also expected to worsen as GM and Chrysler restructure their operations to become leaner but viable enterprises.

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The developer of Saint Regis Hotel in Detroit has already defaulted on a commercial loan. Leaner corporations would also mean less tenants and increased vacancies in commercial buildings.

Certainly, the impact of the GM and Chrysler bankruptcies on the real estate industry will not only be felt in Detroit and across Michigan, but also in various areas nationwide where approximately 2,300 GM and Chrysler dealerships will be closed.

In April, General Growth Properties, one of the countrys largest mall operators, filed for bankruptcy as more and more vacancies wiped out its mall income.

AutoNations chief executive Mike Jackson said that single-purpose property projects have to be changed in light of the bankruptcies and the recession.

Edward Montgomery, head of recovery for automobile industry communities under the Obama administration, said the bankruptcy filing by GM, once considered the symbol of U.S. industry, will hurt the employment markets and industries in the Midwest, especially Michigan, Ohio and Indiana.

Labor market researchers estimated that the bankruptcies of Chrysler and General Motors would cause over 1.3 million job losses by the end of the year.

In 1979, GM was paying the salaries of 618,000 employees, the largest number among U.S. companies. By the first months of 2009, the number is down to only 88,000. GM is expected to lay off another 21,000 employees and shut down up to 20 auto factories.

Nevertheless, President Obamas administration is hopeful that General Motors will emerge from bankruptcy a better enterprise. He was expressing the same hope he conveyed when he launched his Making Affordable Home program to save American houses from foreclose home auction inventories.

Joseph Smith has been educating buyers on the finer points of

Foreclosed Home Auction

at for over five years.

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GM to Add More Homes to Foreclosed Home Auction Inventories }