Foreclosures Are Opening Doors to Many

Posted on May 27, 2009
Filed Under Foreclosure Homes | Leave a Comment

Foreclosures are not only shutting doors but opening doors to many. The climate is idea for affordable accommodation as house prices tumble.

Evelyn O’Hara is one of the lucky few who inked an agreement recently to buy her first nest in Valley Stream. In Nassau County she was the first lucky owner to avail of the assistance offered by a federal programme for buying, refurbishing and reselling foreclosed units. The idea is to stabilize the markets that have been badly hit by foreclosures.

The Mayor of Hempstead Wayne J. Hall Sr. said, “Most minority communities have been hit heavily with foreclosures. We have about 400 houses in foreclosure, maybe more. Some are in pretty good shape, but when they’re boarded up, squatters come in and that brings down the value of the neighborhood. This program will help bring our village back.”

The house that O’Hara now proudly calls her own has three bedrooms, brand new appliances and boasts of a private back garden. It is one of the six units that Nassau officials purchased from Fannie Mae with the help from Neighborhood Stabilization Program. Grants have been sanctioned to municipalities for this purpose.

Nassau County has got $3.1 million as part of the grant funds. It has entered into an agreement with Long Island Housing Partnership and Bedford Construction (private development firm) in Valley Stream to put into force the project.

Purchase of the six houses cost Nassau $1.3 million. Long Island Housing Partnership is engaged in purchasing the houses, repairing them and then selling them to buyers who are eligible and fulfill certain conditions. The selling price ranges from $170,000 to $275,000. The money thus received would be ploughed back to buy more units.

Foreclosures in Nassau jumped from 767 in the last quarter of 2008 to 1,337 during the first three months of 2009 according to the findings of Nassau County Office of Housing and Homeless Services. In Suffolk too the jump was from 442 to 769 during the same time period.

Suffolk County as well as Islip Town and Babylon Town are participating in the programme. The county and the two towns have been awarded $11 million for spending. The initial process of choosing the houses to purchase has already started.

Foreclosure numbers are suddenly increasing with the temporal withdrawal of the moratorium by the lenders. It is calculated that each foreclosure brings down the value of property by 6%. So the first aim is to bring back stability to the real estate market.

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