Funds for Renovating Bank Foreclosed Homes for Sale

by Simon Lindsay on States

Abandoned and vacant bank foreclosed homes for sale will have a chance to be renovated using federal funds from the Texas Department of Housing and Community Affairs (TDHCA). In Midland County, the number of foreclosure properties continues to increase since last year, albeit in a slow pace.

The rate of foreclosures in the county rose to 0.40 percent this year from 0.20 percent last year. Despite the rising trend, industry experts take consolation that the figures are far below the state average rate of 1 percent and the 2.63 percent national average rate.

In June, the rate of loan delinquency in Midland County was also relatively low at 1.8 percent. The figures were lower than the average rate statewide of 4.20 percent. Likewise, the county rate was lower than the 6.72 percent national average.

But despite the manageable foreclosure rate increase in Midland County, TDHCA still chose to provide $6.8 million in federal funds to the county. The TDHCA grant money is part of the $102 federal funds from the U.S. Department of Housing and Urban Development.

The federal funds allotted for the county will not only go to the repair of foreclosed houses. The Midland County Housing Authority decided also to use the funds to provide assistance for the repair or rebuilding of houses in order for them to be rented or sold to families in the area. Potential buyers may become eligible for assistance.

The TDHCA is considering several factors when choosing the beneficiaries for the federal money to make sure that the funds are spread fairly throughout the state and not just concentrated in certain areas like the counties of Harris and Tarrant because of the high volume of foreclosed houses.

The news about the federal funds is welcomed by many Texas residents, especially those in the South Midland County who are planning to renovate their properties with a plan to sell. Others just want to see dilapidated foreclosure homes converted into properties that will entice buyers and not criminals.

For the first six months of this year, Texas posted a total of 49,144 foreclosures. The figures showed that one out of 192 houses or 0.52 percent received a foreclosure filing. Industry experts are bracing themselves for a potential increase in foreclosures as unemployment continues to rise across the state and the country.