Restoration Targets Listings of Short Sales and Distressed Homes

by on Foreclosures

Michigan has started renovating dilapidated properties as part of a statewide effort to revitalize neighborhoods suffering from huge supplies of distressed homes and listings of short sales. The renovated properties will then be sold to qualified homeowners and investors.

The state has some of the highest numbers of foreclosed properties in the whole U.S., including Redford foreclosures for sale. In 2008, the federal government provided Michigan with $253 million under the Neighborhood Stabilization Program (NSP) to be used in purchasing vacant foreclosed houses that will be rehabilitated and then sold to low and moderate income homebuyers.

With bank foreclosures in Michigan continuing to pile up after the initial NSP funds were issued, the state again qualified to be one of the recipients of NSP funds in 2010, with the region getting $223.9 million more to continue the renovation effort. A big part of the effort is reportedly concentrated on the metro region of Detroit, where several distressed residential properties have already been restored and offered for sale.

With numerous listings of short sales and distressed properties found in the city, people behind the program are finding enough sources of houses that can be restored and sold at affordable prices. According to authorities, the plan is to rehabilitate 100 houses at least and sell them for a price of $50,000 to $150,000. The program also targets around 15 communities in Detroit with the help of Home Renewal Systems and the Michigan Association of Realtors.

Under the program, a residential bank foreclosure for sale will be renovated and provided with appliances, electrical and plumbing systems, cabinets and other basic necessities. Officials stated that the repairs that are being done usually depend on the condition of the property, with some needing new roofs or new furnaces. They added that the goal is to restore the dwelling to a condition wherein future buyers will not worry about the house for the next five years of living there.

Marketers of the renovated premises revealed that majority of properties purchased from listings of short sales and distressed home listings usually require foundation repairs and bathroom and kitchen upgrades. So far, a number of these homes has already been made available to interested and qualified buyers in the metro Detroit region.

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