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City Initiatives Boost Springfield Foreclosure Investing

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By : John Cutts    99 or more times read
Currently, there are at least two city initiatives giving a great boost for Springfield foreclosure investing. These are the creation of a historic district in the Indian Orchard neighborhood and the presentation of a city budget that reduces costs but avoids layoffs and certain tax increases.

These initiatives reflect a higher quality of life that encourages both outsiders and residents to buy properties and live in Springfield.

This week, Mayor Domenic Sarno has presented his $553.9 million budget for fiscal year 2011 to the city council, which will approve the proposed budget or make changes. Sarno and his chief financial and administrative officer Lee Erdmann announced that the budget was higher by just around one percent or by $5.2 million from the current budget. They added that the budget avoids layoffs of city employees but instead allows the hiring of 23 more firefighters and 25 more patrolmen and the maintenance of a $43.6-million reserve fund.

Based on initial analysis of the budget, the current tax rate could be maintained, but it could increase for businesses and homeowners if there is a wide gap between revenues and expenditures.

The budget reflects good fiscal management, including the strength of the city in resisting the real estate revenue effects of foreclosure property list. People contemplating Springfield foreclosure investing would be encouraged by the stability of Springfield, realizing that their chances of reselling whatever foreclosed property they buy at great profits are stronger.

The budget includes $310 million for schools, marking a jump of around $5 million, and money for maintaining parks and pools for summer activities. The city also has reserve funds and expects the level of funds to be still at a healthy level of $43.6 million even after reducing it by about $12.5 million next year to fund additional expenses.

Evidently, the city control board, which was dissolved in June last year after its five-year tenure, helped implement good financial practices. In January, Erdmann, the first chief financial officer of the city, was appointed to comply with the conditions laid out by the state of Massachusetts for Springfield.

Meanwhile, the kind of properties entering foreclosure auctions in Massachusetts in March showed that more homes in wealthier neighborhoods are getting distressed. The 2,581 foreclosure petitions in March included a higher percentage of higher-cost homes.

Both foreclosure petitions and deeds statewide increased month-over-month in March by 22 percent and 51 percent, respectively, increasing opportunities for Springfield foreclosure investing.

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