Posts (RSS)Foreclosed Homes for Sale Will Get a Makeover
Officials in Livonia, Michigan are considering whether to sell the foreclosed properties that the city purchased to Livonia Public Schools. Livonia Career Technical Center students will renovate or foreclosed properties remodel the repo homes for sale.
The idea to sell the foreclosed homes acquired by the city to Livonia Public Schools was proposed by councilman John Pastor during a study session. He pointed out that his proposal will serve as the city’s exit strategy for the distressed properties on its inventory.
He explained that foreclosed houses have already undergone bankruptcy, homeowners have released them and banks disposed them through an home auction or sale, adding that the city of Livonia might as well make use of them. He said that schools can remodel the foreclosure homes and sell them for a profit.
Livonia Public Schools administrator of communications Donna McDowell said that students are working on foreclosure properties owned by the city as part of the programs of the Livonia Career Technical Center. But she added that there was no discussion at the school board about buying city-owned homes.
Meanwhile, Pastor developed the idea of selling bank foreclosure homes to schools while the city council was reviewing the proposed acquisition of three tax-repossessed houses and a foreclosed house by the U.S. Department of Housing and Urban Development (HUD).
The Housing Department of the city would pay about $26,733 for the three tax-repossessed houses and $1 for an HUD-foreclosed home, in addition to paying for closing costs under the Community Development Block Grant and similar federal funds.
The city council will decide on the property acquisitions on August 10. Councilman Brian Meakin has proposed a support resolution while the opposing resolution was made by Councilman Joe Laura.
If the planned purchase would push through, the city would have a total of 42 houses on its inventory. The purchases will be made by the Livonia Housing Department using federal funds to help in their renovations.
Housing Director James Inglis said that about $1.45 million has been allocated to the city until late 2010. But the city’s initiative to buy bank owned houses did not initially receive the approval of members of the council. Both council members Joe Laura and Tom Robinson opposed buying three foreclosure houses while Laura Toy, president of the council, recommended that the city create an exit strategy.
Inglis said that the goal of the initiative is to stabilize neighborhoods by buying foreclosure properties using federal grants.