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Forgivable Loans to Wisconsin Buyers of Cheap Homes for Sale

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By : John Cutts    99 or more times read
Buyers of cheap homes for sale in Milwaukee, Wisconsin can avail of forgivable loans as part of the city's efforts to alleviate the effects of the foreclosure crisis and stabilize neighborhoods.

The foreclosure problem has been spreading across the Milwaukee County for several months now. The number of home foreclosure filings has flooded the market, averaging 600 per month across the county. The unabated increase in foreclosures led to the destabilization of neighborhoods.

While foreclosure swept across the county, claiming one house after the other, the process of restoring the stability in neighborhoods is being done in a slower pace. The effort involves one home at a time, provided that new owners are found for cheap homes for sale.

To hasten the process of restoring neighborhoods and reducing the number of foreclosure properties, Milwaukee offers forgivable loans of as much as $30,000 to potential buyers of distressed properties who will rehabilitate and live in them for a long period of time.

The loan program of the city is funded under the federal stimulus program amounting to 9.2 million. The funds are geared for alleviating the effects of the foreclosure crisis. The money is also allocated to encourage potential homebuyers to take advantage of the opportunity to purchase repossessed properties at historic lower prices and interest rates.

In turn, officials of the city said that neighborhoods that are severely affected by the foreclosure crisis would be given a chance to restore and stabilize themselves through the help of more new homeowners who have the personal financial reason to take care of the area where they live.

Mayor Tom Barrett said that the program is a micro-solution to a macro-problem. He said that home ownership means giving people an opportunity.

Milwaukee's loan initiative is part of the federal National Stabilization Program (NSP) which aims to help neighborhoods across the country alleviate the impact of the foreclosure crisis. Eligible buyers have to submit requirements. But the good thing is, a loan of $30,000 can be turned into a grant and there is no need to pay it back if the borrower agrees to live in the property for not less than 20 years.

For loans amounting to not over $15,000, it will be forgiven if the owner-occupants purchased cheap homes for sale and stay in them for at least five years.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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