Federal Aid to Buy Foreclosed Homes for Sale in North Carolina

by Donald Hanz on Foreclosure Help

The city of High Point in North Carolina is providing federal funds to buy foreclosed homes for sale. The city has received about $2.625 million under the Neighborhood Stabilization Program (NSP).

The federal funds are intended to be used to purchase foreclosure properties in High Point neighborhoods badly hit by the foreclosure crisis. The funds will also be used to rehabilitate these foreclosure homes.

Industry experts are anticipating a demand for funding, adding that the program is a good chance to move the foreclosure properties. According to market data, about 400 houses were foreclosed in High Point in 2008. And most of the foreclosed homes are located in the zip code of 27265 where moderate and high-income neighborhoods can be found.

Under the NSP, eligible buyers must be first-timers or those who have not owned a house for the past three years.

A loan will be provided to qualified families to help them buy foreclosed homes for sale. The deferred loan amounted to $7,500 and will be used for down payment. Furthermore, qualified buyers may be given as much as $20,000 for repair assistance after they have acquired the properties.

Also covered in the program are 27260 and 27262 zip codes which are inner city areas where foreclosure houses and blighted properties are in abundance. To qualify for the program, potential buyers should meet the income requirements, undergo and complete a consumer credit counseling training.

Industry experts are hoping that the program would help expedite the recovery of the housing market in the area. So far, everything points towards recovery. Last August, the number of home foreclosures in North Carolina dropped by 6 percent compared with the previous year.

Market data showed that 4,317 properties were foreclosed in North Carolina in August, or one out of 956 households. This earned the state the 29th position nationwide in terms of rate of foreclosure filings.

But despite the improvements in this year’s numbers compared with the previous year, foreclosures in North Carolina jumped by 26 percent in August from July. Industry experts attributed the increase to the lifting of moratoriums and the continuing rise in unemployment rate. But they are hoping that the program that aims to help families buy foreclosed homes for sale would pull up home prices and values and may lead to the recovery of the housing market.