Saturday, February 2, 2008

ADVANCE NOTICE: Detroit Plans to let NON-PROFITS buy foreclosed HOUSES for $2000

Detroit had 10,000 foreclosures in 2007, when the tax- and mortgage-delinquent cases are taken together. That is on top of roughly 12,000 foreclosures from 2005 and 2006 combined.
"We think it's a model that could be the beginnings of making a significant dent," he said.
The city put out its request for proposals from nonprofit groups in mid-December, and 27 responded by the Jan. 7 deadline. Diggs said he expects that the city will have a list of finalists in the next few days.

The finalists would have to prove nonprofit status, have home-ownership counseling services, experience with construction or property rehabilitation and financing. The Local Initiatives Support Corp., or LISC, a national affordable-housing group, is helping the city review applicants and plans to offer financing.
Mitchel Alexander, LISC program officer, said the national organization draws its funding from local foundations, banks and HUD.

If the program is successful, Diggs said he hopes banks will want to offer financing.
"It is our goal to qualify as many nonprofits as we can," Diggs said.
Once the finalists are chosen, the city will aim to process 100 properties, Diggs said. The nonprofit would have six to 12 months for renovations and then 90 days to find a buyer. If no buyer can be found, the nonprofit could offer a rent-to-buy option


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