The city of Riverside in California has decided to purchase from listings of bank owned homes in an effort to prevent these properties from becoming blights to neighborhoods and to boost home ownership.Under its program, the city buys abandoned, vacant and foreclosed properties that are in worst shape, renovate and sell them at a cost to first time homebuyers. Riverside Development Director Deanna Lorson said that the city is focusing on listings of bank owned homes that often do not interest private market because of their deteriorating condition.Some of these foreclosed houses may have dirt crawl space that was visible from bathroom floor holes, structurally unsound carport, graffiti on interior walls, holes in drywall and melted carpeting.The city’s cleanup crew have also dealt with drug paraphernalia, human waste and sometimes used contraceptives. All these were left behind by unscrupulous people who trespassed and forcibly enter boarded-up foreclosed houses that have been languishing on the market for a long period of time.Currently, Riverside was able to purchase about 16 abandoned and vacant foreclosure houses, escrowed seven and made offers for 15 more. All these properties purchased from listings of bank owned homes will be rehabilitated and sold to first-time homebuyers on the condition that they live in them, take a home ownership course and meet income requirements.The city’s house renovation program is made possible by the $6.6 million funding from the U.S. Department of Housing and Urban Development (HUD), a $5 million city redevelopment fund and a line of credit amounting to almost $20 million approved by the city council.Under the program, Riverside is required to purchase distressed properties in less affluent areas that meet income set by the HUD and foreclosure rate standards.The city is also required to purchase repossessed homes at below appraised values. Some properties were in such poor conditions that the city was able to purchase them for $60,000 or below.According to data, nearly 12 percent of homeowners in Riverside were behind in their mortgage payments during the first three months of this year. And city officials are concerned that more foreclosed properties will flood the housing market.Riverside staff was able to identify nearly 400 distressed properties on listings of bank owned homes. However, about 300 of these repossessed homes failed to meet eligibility standards or were just not available.
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A California city purchased from listings of bank owned homes as part of its efforts to prevent the deterioration of neighborhoods and to boost home ownership. The city buys foreclosed houses that are in worst shape, rehabilitate and sell them.
Joseph Smith has been educating buyers on the finer points of Listings of Bank Owned Homes at ForeclosureListingsNationWide.com for over five years.
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