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Flipping Used to Combat Rising Residential and Mobile Foreclosures



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By : John Cutts    99 or more times read
Residential foreclosures, including a small number of mobile foreclosures, have become a major concern for the city of Elgin, Illinois. However, with the help of federal government funds issued through the Neighborhood Stabilization Program (NSP), the local government is trying to cut down the high numbers of foreclosed properties in the area through home flipping.

Under the initiative, the city purchases Elgin foreclosure houses, IL, rehabilitates these properties and sells them to qualified homebuyers. The area received $2.16 million from the NSP to finance this initiative, with 12 properties purchased by the city so far. Four of the residences were reportedly purchased and passed on to Habitat for Humanity, which will be responsible in fixing up the premises and selling them off.

The city owns other Illinois foreclosure homes for sale, but has yet to fix them up. Authorities revealed that they are still waiting for funds that will come from selling the four already rehabilitated fixer upper houses. The project, which started in 2008, focuses on areas with the biggest number of foreclosures and considered to be at risk for further foreclosure problems in the future.

With residential and mobile foreclosures continuing to rise in most areas of the city, officials are being more careful in choosing who will purchase the rehabilitated homes to prevent new owners from falling into foreclosures like their predecessors. Potential buyers are required to attend property ownership classes and are also required to occupy the residences for a certain period of time.

Buyers also need to meet income qualifications before they can purchase any of the rehabilitated homes from foreclosure. The project has been praised by several sectors, particularly because it provides jobs to certain members of the community, especially those who are in the building trades. In determining the selling price for each renovated house, officials depend on comparable rates for other houses in similar neighborhoods.

Supporters of the home flipping project are hoping that the initiative will help improve the conditions of neighborhoods that have suffered from huge supplies of bank foreclosed homes and mobile foreclosures. They added that the finished products will offer buyers great housing deals.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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