Detroit is in financial trouble because the Detroit city Government would rather be in financial trouble than do what is needed to get out of trouble.
yes, people who want free stuff don't want to pay the bills, but, the bills have to be paid. Detroit, and Michigan generally will probably ask the US government to bail them out. That won't happen while Bohener is in the Speakers chair. Also, if Detroit gets bailed out, expect to have to also bail out Chicago, New York, Newark, and California.
But, Detroit could fix things quickly, if they were willing to.
First, foreclose on all properties with more than 5 years back taxes owed. Municipalities can do this, and most do. Then, sell the properties at auction. Each year, sell another block.