Wednesday, Nov 16 2011 5:34PM
Donovan visited an Arizona neighborhood to stop at two distressed homes which were bought out and rehabilitated for sale by a nonprofit organization using federal funds. The home cost $80,000 to buy and $21,000 to prepare, but is now selling to a buyer for $94,000.
U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan recently spoke about the government's
housing assistance and neighborhood stabilization efforts, noting measures to prevent foreclosures have been successful, CNBC reports.
Donovan visited an Arizona neighborhood to stop at two distressed homes which were bought out and rehabilitated for sale by a nonprofit organization using federal funds. The home cost $80,000 to buy and $21,000 to prepare, but is now selling to a buyer for $94,000. The group which purchased and resold it, Chicanos Por La Causa, used federal funds obtained through the Neighborhood Stabilization Program to complete the transactions.
According to Donovan, similar groups are taking action in communities across the nation, with the effect of getting homes back on the market. According to CNBC, Donovan stated their efforts are reducing the number of distressed properties and relieving the negative pressure foreclosed homes can exert on nearby property values.
The news source notes the federal government is also expanding the Housing Affordable Refinancing Plan, to broaden it and allow more underwater homeowners to receive assistance and avoid foreclosure proceedings. This step is meant to stabilize homeowner finances, reduce the number of new foreclosures weighing down the market and prevent the downward slide of home values that distressed properties contribute to.
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CNBC