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Florida County Ahead in Buying Bank and Foreclosed Homes HUD

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By : John Cutts    99 or more times read
The county government of Orange has outpaced other local governments in Florida in buying bank and foreclosed homes HUD. At the same time, Orange County also bested other local governments in providing down payment and closing cost assistance to address the growing number of foreclosure properties and prevent them from becoming neighborhood blights.

The county has received about $27.9 million as its share in the $3.9 billion allocated under the federal government's Housing and Economic Recovery Act which was passed last year. So far, officials in Orange County were able to spend about $2.1 million for the initiative.

Other Florida governments, including counties of Palm Beach, Orlando and Hillsborough, are still preparing to spend their first federal foreclosure prevention funds. According to Orange officials, the $2.1 million initial spending of the county was used to purchase and provide down payment assistance for 30 foreclosed homes. So far, 14 out of the 30 foreclosed houses are now occupied.

The goal of Orange County officials is to place families on about 200 homes by spring. The end target is to provide housing to hundreds of families by the time the program expires in 2013.

Meanwhile, industry analysts cited several factors that hinder the federal foreclosure prevention initiative. One of these reasons is the increasing number of investors taking advantage of bargain prices to purchase bulk of foreclosure properties, thus posing a competition for the federal government's foreclosure-buying programs.

Another obstacle is the complex ownership claims associated in each foreclosed home which resulted to long delays. But housing chief Mitchell Glasser said that Orange County is determined to meet its goals and milestones.

The overall goal of the county's initiative is to use the public funds to purchase and renovate foreclosure houses overrun by weeds and damage by vandals. County officials are hoping that the initiative could help preserve market values of properties in neighborhoods severely affected by the foreclosure crisis, such as Azalea Park, Pine Hills and Union Park.

The initiative also aims to help low-income and moderate-income families occupy these houses. Most of these foreclosed homes for sale would be purchased and renovated with energy-friendly amenities. Then they will be put on the market for sale. Proceeds from the sale will be returned to the program to purchase more foreclosure houses.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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