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Federal Cash to Rehabilitate Bank Foreclosed Home Listings

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By : John Cutts    99 or more times read
The Lee County and the Florida cities of Fort Myers and Cape Coral are expected to purchase properties on bank foreclosed home listings for rehabilitation. Already, a number of contractors are competing for a chance to renovate foreclosed homes in these counties. The initiative also means more job opportunities in the area.

Industry experts said that over 200 foreclosure houses are projected to be acquired by Lee County and the cities of Cape Coral and Fort Myers under the Neighborhood Stabilization Program which was launched by the Obama Administration to help neighborhoods hardest hit by the foreclosure problem.

So far, over 50 contractors are bidding for a chance to rehabilitate the foreclosure homes that the county and cities will acquire.

Under the program, Lee County received about $18 million for the buy and fix program. It then awarded about $4.2 million to allow Fort Myers Housing Authority to purchase and renovate foreclosure houses which will be rented later to low income families at affordable rates.

The remaining amount will be used by Lee County to purchase and renovate 150 additional foreclosure properties. The renovated homes will then be sold to low-income and moderate-income families.

So far, renovation for two houses has been completed while a third is nearing completion. A fourth property is under renovation by Tarpon Bay Construction. Brent Schepp of Tarpon Bay said that no one will get rich doing the county's renovation projects because there is a very tight competition. He added that all they could expect is to break even on the initiative.

Schepp said that what is important is for their people to have work and to help the company's subcontractors and suppliers.

The fourth house in Lehigh Acres needs extensive work, including a new siding, roof and plumbing, according to Schepp.

On the other hand, the Cape Coral initiative has a budget of $7.1 million. The city will start purchasing houses in coordination with the Cape Coral Housing Development Corp. City officials are targeting about 44 distressed properties that need renovation and additional 20 units that are ready to be occupied.

Under the guidelines for the program, the Housing Development Corp. will handle the selling of the renovated houses to four-member families with annual income of not more than $72,840.

City officials are hoping that the program would be able to help a lot of people who failed to qualify for other home assistance initiatives.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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