Glendale Flips Properties from Bank and Sheriff’s Foreclosure Sale

by Peter Vernon on cities

Sheriff's foreclosure sale and other foreclosed property sales have become a great source of low-priced properties for investors and homebuyers. In Glendale, Arizona, the city has also taken advantage of these affordable properties, using them to fight neighborhood blight in areas with the highest concentration of foreclosed properties.

The city has been purchasing Glendale foreclosures for sale using federal funds from the Neighborhood Stabilization Funds project worth more than $6 million that it received in 2009. A couple of nonprofit organizations are collaborating with the city to put the program into fruition. So far, Glendale has purchased and renovated 29 empty houses and sold them. It has also used a percentage of the funds to construct two affordable senior multi-housing properties scheduled to open in a couple of years.

Glendale is set to get an additional $3.7 million come March 2011 and local officials have stated that the money will again be used in purchasing bank foreclosures in Arizona. They stated that the home-flipping program has so far created positive results in the city. Initially, Glendale reserved a little more than $270,000 to provide mortgage assistance to troubled borrowers, but the effort failed to garner public interest, according to city officials.

This led them to make the decision to use the funds instead into buying foreclosed properties like the ones offered in a Sheriff's foreclosure sale. Using the money to purchase foreclosures has proven to be helpful to the local economy as well, according to city officials. It is because they employ contractors who purchase building materials. Homebuyers who get hold of the for-sale renovated properties also contribute to the city's economy by buying furniture and hiring local people to upgrade the structures.

The city has been buying foreclosure sales at single-family communities in areas like Cactus, Barrel and Ocotillo. The number of foreclosed properties has been estimated to be around 2,000 in Glendale, which represents 2.3% of total residential properties in the area. The city is being aided in its efforts by nonprofit organizations Habitat for Humanities and Chicanos por Las Causa.

Officials stated that they plan to continue purchasing homes at prices similar to those offered at a Sheriff's foreclosure sale and sell them to low and moderate-earning families. Residents have expressed agreement towards the efforts.