The township of Redford is willing to spend $3.04 million of government money to purchase foreclosed houses, restore them and help low earning families buy them. The fund from the National Department of Housing and Urban Development is planned to be used within 18 months.
There are lots of foreclosures in Michigan particularly in Redford. Here around 750 homes are already vacant and 400 more are in foreclosure. Some of these abandoned homes are uninhabitable and are planned to be demolished to give way to new houses.
Mike Dennis, the community development director, says that this project is aimed to help foreclosure-concentrated areas in Michigan. They want to focus in North Redford and Six mile and the central and South of Redford.
The ex-foreclosed-newly-refurbished homes may be owned by those who are really in need. The purchasing aid may be granted to buyers with 120 percent or less than the median income of their residential area. They must also be eligible to a 30-year loan. So, a family of four could only have around $83,800 annual earning to acquire the aid.
The purchasing aid can be worth $5,000 for each potential buyer.
One-fourth of the HUD budget is set for those who earn less than 50 percent of the median or $34,950 for a family of four.
No profit is intended from this project. The sales from the sales of foreclosed homes will be used in furthering this project like for hiring contractors.
In order to save, they would like to recycle all the usable supplies from these foreclosed houses. They would also collaborate with organizations in the locale.
Maria Marino, a member of the Board of Trustees condemned this plan. She explained that the economy is faltering because of the exceeding free rides given by the federal government.
This HUD program is based on the Housing and Economy Act of 2008. It costs around $4 billion to fund the whole nation. Redford will receive their part by February.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.