All Forum Posts by: Account Closed

The city of Oshkosh hopes to take advantage of a federal program to buy foreclosed homes for $1 and partner with two nonprofit organizations to revitalize Oshkosh neighborhoods.

This week, the Northwestern newspaper of Oshkosh, WI., ran an article that stated, the city of Oshkosh was going to buy up to 19 HUD properties that the banks have on the books for more than 6 months. All for ONLY $1.

The city has developed a set of criteria that must be met before it would go forward with a purchase. Oshkosh Principal Planner Susan Kepplinger said the city would have to identify the proposed use for the property: Demolition, rehabilitation or to sell as-is. Also, NeighborWorks, Habitat or the school district would have to provide a written commitment that describes their intent for the site, a firm timeline for disposition or use of the property, the intended use of the property, the scope of work that would happen and proof that the selected agency had adequate funding to pay for the work.

Steve Hoopman, executive director of Habitat for Humanity in Oshkosh, said the program could give the agency enough vacant sites to build homes for the next two years—at a rate of two new homes per-year. It could also create an opportunity to generate much needed funds through HUD properties that need renovation.

Hoopman acknowledged that securing funding for these projects could be Habitat's biggest challenge. He said the renovation portion of the program is a departure from Habitat's past scope of work that could open up other funding sources.

"Turning (foreclosed homes) around and getting families back into them is something Habitat is ready and willing to participate in," Hoopman said. "With neighborhood stabilization funds and other dollars available, we can access that to do the rehab portion of it right."

It made me wonder about the rest of the markets. If this happens everywhere in the nation, it will take away a lot of profits from wholesalers and investors alike.

Seems to me that the banks could have negotiated with the original homeowners a little better to help them stay in their homes. Just shows you the mind set of a Bank. We need to start getting more agressive buying these these homes so we don't miss out on the profit potential.
HUD houses under consideration

319 E. Irving Ave.
429 Monroe St.
610 W. Ninth Ave.
802 Idaho St.
817 W. Seventh Ave.
919 Ceape Ave.
442 W. 12th Ave.
1637 Arizona St.
14 E. Melvin Ave.
926 Eastman St.
1241 Jackson St.
1301 Jackson St.
422 W. 19th Ave.
1309 N. Main St.
1213 Bowen St.
820 Dove St.

Manfred Schaefer
[websites removed]

I had a homeowner approach me wanting to sell his home. His first mortgage is behind. Owes $52,520 first mortgage, $660 payment. Second mortgage $26,775, $275 payment, Current.

2 Story, Built 1900,
4 BR, 1 Bath, 1,950 Sq Ft.
Detached garage,

Assessed at $80K
Needs $10K repairs
Rents in area are $550 to $700

Should I bother trying to help this homeowner. There is no equity. Received a letter to cure by 2/4/09.

Any ideas?