Pre Foreclosures and Foreclosed Houses Become Rehab Sources

by Donald Hanz on cities

Habitat for Humanity, a nonprofit organization better known for constructing new dwellings, has been rehabilitating foreclosed houses and pre foreclosures in Detroit, Michigan with the help of Neighborhood Stabilization Program (NSP) federal funds. The federal initiative launched in 2008 has been providing funds for the redevelopment of residences all around the U.S.

According to Habitat officials, out of the 221 houses the organization has built, 104 were rehab dwellings. Locally, the organization has rehabilitated a handful of Detroit foreclosed homes and converted them into dwellings that are fit for families to live in.

Officials from the nonprofit have admitted that rehabilitating foreclosed homes in Michigan and in other parts of the U.S. is not exactly the original plan of the organization, but the condition of the housing market and the current policies in place have pushed the nonprofit towards that path. They added that as a nonprofit, Habitat will go where funds are available.

The organization has revealed that right now, rehabilitating old homes is becoming a trend among most of the nonprofit's affiliates. They purchase foreclosures for sale and then convert them into habitable dwellings, a practice that was prompted by the changing condition of the housing market and the funds from the NSP that provided the impetus for the rehab projects.

With pre foreclosures and foreclosed residences increasing in number every week, Habitat has never been short of sources for old homes. So far, the organization has purchased 26 foreclosed houses this year and is on track to building eight residences. Last year, two houses were rehabilitated by the local affiliate, while 12 dwellings were built in Sterling Heights, Roseville, Warren and Clinton Township.

The agency has revealed that they often choose the most dilapidated dwellings which make neighbors happy. They then rehabilitate such homes and put moderate income households in them. Most of the families occupying these rehab houses think that the refurbished dwellings are often better than new ones and actually provide better amenities once Habitat has completed the renovation.

Habitat for Humanity's use of NSP funds to rehabilitate some foreclosed residential properties and pre foreclosures have been welcomed by Detroit neighborhoods, not only because the nonprofit is providing affordable and habitable homes to families but also because they are helping in the revitalization of neighborhoods.