Oct
21

Town Rehabs Foreclosed Real Estate to Benefit Neighborhoods

October 21, 2010

Now, here’s a city making the most out of the foreclosure crisis.

The town of Cicero has been buying bank-foreclosed homes, rebuilding them and then offering them for sale to low-income home buyers.

Over the last two years, Cicero has purchased three foreclosed properties. The first, 2725 S. 58th Court, was a gut rehab that has already been purchased by a family for $179,000.

Cicero

The second home for sale in Cicero.

The second — a three-bedroom, two-bath, energy-efficient home located at 2724 S. 58th Court — has been renovated and is on the market for $182,000.

Cicero officials held a groundbreaking today for its latest endeavor: A foreclosure and an adjacent vacant property that will be converted into a town house duplex.

The project will create two residences at 5111 and 5113 W. 29th Place.

Each home will include:

*Three bedrooms

*Two-and-a-half baths

*A two-car garage

*All major appliances

*A price tag of 160,000

Cicero has purchased the foreclosed properties with money from the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP).

To purchase one of these homes, prospective buyers must meet income-ceiling criteria:

*A single home buyer must have an income of no more than $63,650

*A four-member family can earn up to $90,000

*A six-member family can earn up to $104,000

The town is prohibited from making a profit on the sales of these homes but can recover acquisition and construction costs. All proceeds collected at closing are directed back into the program to continue the process of acquisition, redevelopment and sale.

Sounds like a great way to turn around a tough situation.

“We do not want to see anyone lose their homes. But once the bank takes a property, their record is not very good at maintaining them. I do not want these homes to turn into eyesores that impact their neighbors,” said Cicero Town President Larry Dominick. “This program will insure that the properties are renovated and in some cases rebuilt from scratch and then resold to the public as family residences.”

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