(No Ratings Yet)
Loading ...What does one do when the government effort to prevent foreclosures has been falling short? A city sets an example in making the best out of the Massachusetts foreclosures problem.
New Bedford is a quaint community filled with working-class neighborhoods. However, the once picture-perfect city has been struggling with a common problem lately – that of foreclosures. The housing crisis has not only been an eyesore and constant nuisance for residents; it has also threatened to plunge real estate value in the area.
The city’s housing problems have added to Massachusetts’ foreclosure problem. The number of troubled homes has risen to 380, a big leap from 175 from three years ago. Because of this, the neighborhood, headed by Mayor Scott Lang has decided to make concerted efforts to solve the problem.
New Bedford has decided on a very simple yet effective solution. Instead of depending on banks and investors who are thousands of miles away, the city has been planning to employ city employees to demolish foreclosure homes which have no hope for rehabilitation.
Meanwhile, those that are salvageable are renovated and sold to first-time home buyers who are chosen via lottery. Just recently, the city spent $280,000 to renovate a deteriorating multifamily home and was able to sell it.
The grassroots effort has brought back stability to the neighborhood, especially to those hardest hit by the crisis. Patrick Sullivan, the director of the local Office of Housing and Community Development said that the city was also trying to ensure federal and state grants to finance the demolitions and renovations. A grant would be easier to obtain in cases where the substantial back-taxes are owed or if a house is structurally unstable and becomes a community hazard.
So far, the foreclosure program of the city has gathered strong support from its residents.
