The foreclosure problem in Osceola County, Florida is getting worst that officials are willing to give people as much as $30,000 to allow them to buy foreclosed home for sale.
Last year, one in every 10 households in the county went into foreclosure. Under the initiative, the county plans to use the almost $14 million federal funds to help it trim down the number of foreclosure houses in the area and prevent them from becoming blights to neighborhoods.
Several cities and counties across the country have received federal funds under the Neighborhood Stabilization Program (NSP) to buy, rehabilitate and sell foreclosure homes. On its part, Osceola intends to give money to prospective buyers to give them the means to purchase foreclosure properties.
Some of the hardest neighborhoods in the county are Poinciana and Buena Ventura Lakes. County officials are planning to use the federal funds to provide down payment assistance to prospective buyers who are willing to buy a foreclosed house.
Osceola County Chairman John Quinones said that the allocated $14 million federal grant for the initiative is projected to help 150 foreclose houses. He added that the funds will be given directly to prospective home buyers, amounting to as much as $30,000 based on the beneficiary’s income.
Officials said that low income and moderate income buyers are eligible to apply for the loan which will be interest-free. Buyers need not pay the loan if they live on the foreclosure properties that they purchased for a certain period of time.
According to industry experts, what makes Osceola County’s initiative different from other programs that use the NSP funds is that recipients need not be residents of the county or first-time homebuyers. However, it is required that prospective buyers should purchase a foreclosed house in Osceola County.
Quinones said that the county is finding ways to stretch the funds in order to serve as many people as possible.
A series of workshops will be held in September to inform people who are interested about the guidelines of the program. It is expected that distribution of funds for down payment assistance will start before this year ends.
Industry analysts said that Florida earned the fourth position among the top 10 states in the country with high foreclosure filings last month, and the second among those with high foreclosure rate.
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