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Buffalo Foreclosed Homes For Sale: Way Below Their Original Price

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By : John Cutts    99 or more times read
Some of the Buffalo foreclosed homes for sale offered at very low prices are those that were subsidized by City Hall in the course of over 20 years. Now, these same residential structures are being sold for about 24% less than their initial market value; making them some of the cheapest foreclosed homes in New York.

The local government spent almost $30 million to help city residents purchase homes that they would not have been able to afford. The decision to provide homeowners with financial aid reaching up to $25,000 was part of an effort to improve the condition of the neighborhood.

However, the foreclosure crisis hit the subsidized residential structures hard, and most of them now have an assessment worth of 12% below their original price of $123 million.

Some of the homes are later sold for almost a quarter less than their initial value, making them a good buy for people who are into buying foreclosure houses.

An analysis made by a local newspaper’s real estate team showed that the Buffalo foreclosed homes for sale that were part of the subsidy program have an overall assessment value decline of 12%; although it differs from one development area to another.

The analysis also found that among the 431 subsidized houses that were resold, more than half were for foreclosure, with majority of the transactions involving the original owner of the subsidized property.

These foreclosed homes in New York effectively negated the $4 million subsidies provided to 184 of the owners of the foreclosed properties. On average, three out of four houses that were resold were offered for significantly less than their true value.

Those buying foreclosure houses who happened to get hold of these subsidized properties paid for as less as 31 percent of the structures’ original price. The properties continue to lose value in subsequent sales, selling for as low as 42% cheaper than their original value.

The areas that suffered the worst among the subsidized communities are Saint Nichols Place and several parts of the Jefferson Avenue location. In these areas, an estimated 10 out of 11 properties were foreclosed.

The subsidized homes that were later offered as Buffalo foreclosed homes for sale were examples of how foreclosure has affected the city. Though it is not very good news to City Hall, it can be considered a good opportunity for those looking for foreclosed homes in New York.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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