Bank Foreclosed Homes for Sale for First-Time Buyers

by Donald Hanz on Foreclosure Crisis

Renters in Ahwatukee in Phoenix, Arizona liked their apartments well enough. But they have always dreamed of owning their own houses. That is why many of them are excited about the city’s new home-buying program.

Under the program, city officials will use federal stimulus funds to help first-time buyers purchase their bank foreclosed homes sale which will help many Ahwatukee renters achieve their dreams of owning a home.

Some Ahwatukee renters attended a seminar hosted by the city for first-time homebuyers who want to learn how they may apply and become eligible for the home-buying program. Under the program, eligible first-time homebuyers may receive about $15,000 which they may use for down payments and for paying the closing costs when they purchase bank foreclosure houses.

According to industry experts, the program will allow eligible first-time homebuyers to purchase a foreclosed house that needs repair worth $15,000 if they have already received the $15,000 under the home-buying initiative.

The city of Phoenix received about $39.5 million federal funds under the U.S. Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP). The NSP is made possible under the Housing and Economic Recovery Act which was approved in 2008 by the U.S. Congress.

Prospective homebuyers were allowed to meet certain requirements such as income to apply for federal funds to help purchase foreclose houses within the city limits.

Since the program started, about 60 city residents have already applied for federal funds under the home-buying program.

To become eligible to receive the $15,000 federal funds, prospective buyers should be creditworthy, meet the income requirements and should undergo and complete a credit and homebuyer education class.

Prospective buyers who are single should have an income of no more than $55,350, $63,250 for couples and for a four-member family, $79,100. Buyers should never have bought a property and will use the foreclosed homes as their main residence.

The home-buying program is not for people who are looking for bank foreclosed houses to buy for investments. Furthermore, the foreclosed homes that prospective buyers should purchase under the program should be owned by banks, meet certain city code requirements and have a market price below 1 percent of the assessed value of the property.

Industry experts are hoping that the program would help trim the number of foreclosure properties not just in the city but statewide. In the first half of this year, Arizona is ranked second among states in the country with the highest foreclosure rate.