Posted on March - 23 - 2011
City Makes Its Move As Foreclosure Investment Remains Slow
In areas where distressed properties dot almost every block of neighborhoods, residents and local officials often rely on foreclosure investment to get rid of excess foreclosed property inventories and prevent neighborhoods from falling into ruin. However, not a lot of people are buying properties right now, even low-priced foreclosed homes. Some cities in Indiana have long realized this and have already taken action to save neighborhoods from blight caused by foreclosures.
A huge percentage of foreclosed homes in Indianapolis and distressed properties all over the state have been left abandoned and empty, with owners deciding to walk away from these structures instead of spending money on sprucing them up for buyers that have become very few. These abandoned foreclosures cause neighborhood blight in most areas, but some cities have taken action and are now busy demolishing or rehabilitating these properties to improve neighborhood conditions.
In the city of Elwood, local housing agencies and officials have been demolishing empty Indiana foreclosures and replacing them with new houses, using money from the Neighborhood Stabilization Program (NSP). Elwood has received over $2.2 million from the NSP fund, and the city is now using this money to demolish abandoned and dilapidated foreclosed houses. So far, the city is scheduled to demolish 10 of these properties and replace them with new dwellings.
In a way, the city is doing a foreclosure investment of its own as these efforts are geared towards improving the looks of neighborhoods and perhaps bring more residents to formerly blighted communities. Officials stated that they are also hoping that the project will help increase values of properties all around the city and, at the same time, get rid of blighted properties that are not generating taxes.
As to the properties built to replace the demolished foreclosed dwellings, these structures will be offered as houses for sale, with officials revealing that they are targeting the end of April to get these new homes available to buyers. The profit that will be generated from the sale of the new houses will revert back to the fund, city officials also revealed.
The money will then be used to demolish more abandoned foreclosed houses and rebuild distressed properties that still have strong foundations and then sell them to interested buyers after they get fixed and improved. The city is reportedly planning to continue the cycle of foreclosure investment until 2013; the date that the NSP program is set to end.
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