Fixing Foreclosures Is Keeping Georgia Firm Busy

June 11th, 2009 | Tags: Foreclosure

georgia-foreclosure

Fixing foreclosed homes is keeping a Georgia firm busy. Tim Cabrera looks at the artwork plastered on the walls of a residential house his firm had recently purchased. It’s trash graffiti – most probably the work of local vandals. No part of the house has been spared. Cabrera of Pride of Ownership Partners (based in Atlanta) eyed the damage with a sense of rage.

In properties like these Cabrera and his company sees their chance that benefit them as well as the community. They are purchasing and fixing these units to make them marketable. But mortgages are proving difficult to get.

In California and Nevada the lease-purchase option is gaining in popularity according to Jim Grissett of Emory University (Goizueta Business School). He opined, “At a time when we have both distressed sellers and distressed buyers, I think it makes a whole lot of sense.”

Cecilia Robinson is one of the many who are buying these houses. She is in her mid fifties and a writer. She left her home in Baltimore after being foreclosed upon when her business failed. Pride of Ownership has leased her a three bed roomed unit. The firm had bought it from a bank after having it renovated. Robinson can pay the rent for three years but she has the option of purchasing the house at the price fixed by the appraiser at the time of her moving in. If she decided to buy it then the firm would give her a credit covering the down payment that would total to half the rent that has been paid during the three years. This arrangement would hold even if she bought the house before expiry the three year tenancy period. Robinson feels she has made a fresh start and the house is a dream-come-true for her.

This move is profitable both to the buyers, sellers and the banks. Realtor Jeffrey Britz said that they kicked off business from July 2008 with a capital of $1.4 million. Since then they have picked up 50 foreclosed units across various parts of Atlanta. The market has not stabilized as yet and is still shaky. Right now it is not smooth sailing for the firm. There is no guarantee that the houses bought today will sell off tomorrow bringing in profits.

The main problem is with customers not easily being able to qualify for mortgage loans. It has lately become a thorny issue. The new buyers have to participate in a credit rehabilitation programme so as to qualify.