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Buyers of Repo Homes for Sale and Other Residences Get Second Chance

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By : John Cutts    99 or more times read
New Orleans, Louisiana Mayor Mitch Landrieu recently approved the continuation of a home buyer subsidy initiative in the city which helps buyers of repo homes for sale and other residential dwellings in the area. The mayor has signed an agreement that will provide the Finance Authority of New Orleans with $10 million to continue the program.

The program was aimed at assisting buyers interested in acquiring properties under New Orleans foreclosure listings and other types of residences located in the city. The money provided for the subsidy program will come from the hurricane recovery federal financing aid.

According to local housing officials, the mortgage program that has allowed over 400 families to purchase and live in renovated storm-damaged houses and properties formerly under foreclosure listings in Louisiana has run out of funds, leaving several real property deals hanging.

The decision of the local government to provide financial aid will get the program running again. Primarily, it provides loans of as much as $65,000 to buyers interested in purchasing foreclosure houses on sale and other residential types in the city.

The loan can be converted into grants if the borrower is diligent in paying monthly mortgages and continues to live in the premises. The program also includes a provision that offers closing cost financial aid of up to $10,000 for buyers of repo homes for sale and other residential types.

The decision of Landrieu to inject cash into the program was praised by real property agents and home builders who have started getting worried when purchase agreements started falling apart after funds for the subsidy program run out. The eastern part of the city is where the program was mostly appreciated and where over 100 households have moved into fixed-up residences with the help of the initiative.

According to local realtors, the mayor's move will get more taxpayers into vacant and for-sale residences and will help prevent neighborhood blight, particularly in the eastern part of the city. Meanwhile, developers are hoping that further financial aid will be provided to increase confidence among property developers and buyers of repo homes for sale and other dwelling types. This, they asserted, will greatly help the city recover from successive disasters that include foreclosures, hurricanes and oil spills.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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