Foreclosure List Homes in Virginia Fixed with Nearly $4B

Article Written By: Joseph B. Smith

Foreclosure list homes in Virginia will be purchased, rehabilitated and sold by nonprofits and state and local agencies with a total of $3.92 billion in funding from the federal government under the Neighborhood Stabilization Program. The funding was approved by the federal government last year, but the facility to access and use the money will be made available only these coming months.

The state of Virginia was allocated a total of $38.7 million, which the Virginia Department of Housing and Community Development is expected to distribute to nonprofits and local governments that will manage the acquisition, rehabilitation, resale or lease of foreclosure properties.

The counties of Prince William and Fairfax applied separately for NSP grants and received $4.1 million and $2.8 million, respectively. The grants were approved based on the conditions of neighborhoods battered by foreclosures.

In April, Governor Tim Kaine announced the approval of $7 million in NSP grants and announced $9.4 million 4 months later. Chesapeake City was allocated with $1.5 million while the Virginia Beach Community Development Corporation was allotted $1.2 million.

Alisa Winston, housing coordinator for Chesapeake, said the city has not yet received the money, but her team planned to buy around 12 foreclosure list homes in the neighborhoods of Western Branch and South Norfolk.

She added that her program limits repair costs to $25,000 for each house and $40,000 for a property with lead contamination so that the money can be stretched to buy more units. Sales from repaired units will be used to buy additional foreclosures to repair.

Mary Kay Horoszewski, head of the Virginia Beach CDC, said her organization will buy and repair foreclosure homes and then sell them to low-income and moderate-income families.

Nonprofits and local government agencies are given 18 months to budget the money for their programs and 4 years to carry them out. Any excess funds must be given back to the U.S. Treasury.

Based on data from the Virginia Department of Housing and Community Development, the state foreclosure rate has increased to nearly 2 percent in June 2009, up from only 0.24 percent 4 years ago. Over 28,000 homeowners in the state are in default or foreclosure and over 16,000 foreclosed units are vacant, according to the agency.

The three cities with the biggest number of foreclosure list homes in Virginia are Virginia Beach, Chesapeake and Norfolk. Housing analysts cite the large proportion of subprime loans taken out by homeowners in the three cities during the boom.

About the Author

Joseph Smith has been educating buyers on the finer points of Virginia Foreclosure Listings at ForeclosureListingsNationWide.com for over five years.

You Can Link Directly to "Foreclosure List Homes in Virginia Fixed with Nearly $4B" by using the url:
http://www.allbestarticles.com//finance/real-estate/foreclosure-list-homes-in-virginia-fixed-with-nearly-4b.html

This Article Has Been Published on Mon, 18 Jan 2010 and Read 164 Times

Find All Best Articles at http://www.allbestarticles.com

Rating: Not yet rated

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

Related information on Real Estate

Why do I need a conveyancing solicitor when buying or selling real estate?
London Living: The Best in the World
Real Estate Toronto Neighborhoods and Property Hunting for Leases
The Affordable Secret of Mayfair Office Space
10 Ideas To Follow When Selling Your House
Property in Belgravia - London's Centre of Architectural Splendour
Is Abu Dhabi facing Dubai-like property slump?
Chesire England Serviced Offices.
Find out About Relevant Ideas To Choose Horse Stables
Pros and Cons of locating an office in Mayfair
Things to keep in mind when choosing where to locate an office in London
Guide To Buying A 2 To 5 Million Dollar Home In The Dell In Hollywood
When Selling A Home On Sunset Plaza, Point Out The Exclusiveness For The Fastest Sell
An In-Depth Look At The Toronto Home Market
What a Phoenix Real Estate Listing Will not Show That A Neighbor May
Which are the prime areas for office space in London?
Tips to make the most of your office space
How have commercial property prices in London been affected by the recession?
Benefits of working in Covent Garden
Investment opportunities in Pakistan Real Estate sector
Quit Claim Deed Basics
Dubai The Place To Be In Terms Of Property
Buy House in Philippines
Best way to write professional advertisement for Dubai properties
Things to consider while getting a house on rent