Foreclosed Houses Are Being Restored in Massachusetts

deval-patrick1

Foreclosed houses are being restored in southeastern Massachusetts and getting a new lease of life. A programme was released by government officials and housing advocates for reclaiming foreclosed houses and converting them into affordable living quarters.

A housing agency (non-profit) known as Citizen’s Housing and Planning Association will be functioning as a clearing house to help the organizers in the community to buy the vacant foreclosed units and repair these by converting into houses for the middle class.

Aarton Gornstein the director of CHAPA said, “Our goal with this program is to stabilize neighborhoods affected by this crisis by reducing vacant and abandoned units and by providing property tax revenues to municipalities, who need it now more than ever. We are also aiming to ensure that the sales of these properties are done in a sustainable manner that does not set the stage for a future cycle of foreclosure or property decline.”

By taking these steps the properties will be kept out of the clutches of speculators who could be tempted to undertake minimum repairs while biding their time for the market to recover.

The objectives of Massachusetts Foreclosed Properties Initiative was detailed by the Governor Deval Patrick and Gornstein in New Bedford – the latter being one of the many cities badly mauled by foreclosures. In 2008 the banks repossessed over 12,000 foreclosed houses in Massachusetts – three times the number of 2006 as per the findings of Warren Group that deals in tracking real estate deals.

CHAPA will take the lead in connecting the lenders owning the foreclosed units with the local housing bodies and the municipalities. The companies taking part (inclusive of giants like Fannie Mae and Freddie Mac as well as Bank of America) would permit the purchasers who have been selected to be eligible to inspect the units before they are posted on the general markets. The banks were also agreeable to sell innumerable foreclosed units in particular localities to local bodies.

The agencies operating in the communities would be able to tap about $54 million from federal funds released for this purpose of buying and renovating foreclosed houses. Other public funds would also be available. The groups would either lease these out on rent or sell the houses to qualifying candidates at reasonable rates.

Before the unveiling of the project the officials made a tour of the waterfront near New Bedford and marked out many multi-family apartments that have been bought and repaired profitably by an investor.