Settlement allows some Detroit residents to avoid foreclosure

DETROIT (AP) — The American Civil Liberties Union and other groups 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 this week by Detroit’s City Council.

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

The settlement 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.