Foreclosed Houses Are Now Turning into Assets for Lake County

May 27th, 2009 | Tags: Foreclosed Houses

foreclosure-repos

Foreclosed houses that have so far plagued Lake County with record breaking numbers are now turning into assets. It could bring nearly $5 million federal dollars to purchase, refurbish and re-sell or rent out these houses currently standing vacant.
The fund is part of the stimulus package initiated by Washington – American Recovery and Reinvestment Act. It targets those pockets worst attacked by the foreclosure plague. Bill Gearing of Lake County in charge of coordinating matters said, “We would seem to be more than eligible”. He was citing statistics released by HUD.

The federal survey found that Lake County has been badly affected – the risk factor being on a scale of 1:20. To be eligible the rating had to be minimum 18. The survey found 27 of the 31 tracts of Lake County touching the dubious mark. Of these – 12 had the worst score. These figures had been collected before the recent foreclosure avalanche had hit the area. Currently the numbers are worse.

In record numbers the banks foreclosed upon defaulting borrowers in Lake County during 2007 as well as 2008. In 24 months 6,800 claims have been staked. But the speed of foreclosures in 2009 has made the previous numbers seem puny. Since January banks have foreclosed upon 2,300 units.

Fletcher Smith of Community Services said, “The crisis isn\’t just affecting speculators and house-flippers now, you\’re starting to see (the effect of) people who have lost jobs or had their hours and wages cut. We\’re getting down to the core.”
There is competition among the communities for a slice of the housing finds. This grant comes from the second half of the federal stimulus bill. Lake County had been given $3.1 million during the first part of this year to purchase foreclosed units. The money had been channelized through Habitat for Humanity and few other non-profit groups.

As yet the county has not been able utilize the first instalment although the officials have sketched out a plan to take over 28 vacant foreclosed units. The forceful implementation of this plan would bring back hope to the harassed and confused residents. It would once more make into reality the dreams of people with modest income to own houses of their own. The recycling of federal dollars for years will make it possible for the county to make permanent affordable housing for the needy in future.