For Immediate Release Contact: Mike Nowlin
Thursday, July 7, 2011 Cell (989) 450-0855
Unprecedented coalition of Lansing neighborhoods, REALTORS, lenders, civic leaders, legislators and non-profits teaming to sell 25 dream homes at bargain prices in 2011
Local, federal aid available to eligible buyers on first-come, first-served basis
LANSING, MI – An unprecedented coalition that includes Lansing Mayor Virg Bernero, state Sen. Gretchen Whitmer, Ingham County Treasurer Eric Schertzing, Lansing’s neighborhood associations, REALTORS, lenders, civic leaders and non-profits announced today the launch of the new Homeownership And Neighborhood Development (HAND) initiative.
Members of the new HAND coalition are teaming to help the City of Lansing and the
Ingham County Land Bank sell at least 25 previously foreclosed or abandoned homes this year. These homes are either new builds or have been beautifully renovated and are now valued from $45,000 to $125,000. The announcement came during a press conference this morning at 5219 Hughes, which is one of the 25 homes on the market.
“These are houses that can have hardwood floors, vaulted ceilings and other amenities that defy the perception of an abandoned or foreclosed home, and the prices are incredible bargains,” said Mayor Bernero.
“Plus, the
City of Lansing and the Ingham County Landbank are offering substantial down payment assistance that can further reduce the cost of homeownership,” Bernero said. “This is a great opportunity for all of us to work together to move Lansing forward on the path to prosperity.”
As part of the 2008 Housing and Economic Recovery Act, the Ingham County Landbank is offering the homes with down payment assistance from as little as $5,000 up to as much as 20 percent of the purchase price of the home to cover closing costs and provide affordable mortgages.
“From now through the end of the year, we will sell at least 25 Lansing homes that are being transformed from eyesores into eye candy,” said Schertzing, who chairs the Ingham County Landbank. “This broad partnership has never happened in Ingham County before.
“We are not talking about the sale of stereotypical foreclosed properties,” Schertzing said. “The fact is that these houses are great investments for buyers and families. The buyers of these homes get a great deal and a great place to call home.”
Real estate owned, or REO, is a class of property owned by a lender, typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction. REO properties that are not rehabilitated spend an average of 222 days on the market. When communities put the work in to upgrade the homes, the units are sold approximately five months sooner.
“Rehabilitating and returning foreclosed or abandoned properties to the affordable housing stock is common sense,” said Meghan Webber, CEO of the
Greater Lansing Association of REALTORS. “By doing so, we create more opportunities to improve the quality of life for families and ensure communities flourish as safe and appealing places in which to live.”
The
Michigan Bankers Association’s members in the Greater Lansing region are committed to helping renters and first-time homebuyers achieve their dreams, said Sandro DiNello, president of Flagstar Bank and who represented the state’s bankers during the press conference.
“This program is a great way to move potential home buyers in the Greater Lansing area closer to their goal of homeownership,” DiNello said. “And since customer and lender communication is the first step in resolving any financial issue, the coalition offers the added bonus of opening the door to more communication between lenders and potential homeowners.”
To qualify for the program, buyers typically must have a minimum income limit of at least $1,200 per month (minimum income limits can include employment income, social security, alimony and child support).
“We know eligible buyers exist in Greater Lansing who qualify to buy these homes but simply are not aware this opportunity exists,” said
Lansing Neighborhood Council Director Cheryl Risner. “We look forward to working with all the members of the HAND coalition to help rebuild Greater Lansing, one neighborhood at a time.”
The income limits for potential buyers of Ingham County Landbank homes are determined based on the number of persons in a household. For example, one-person and four-person households would need to meet the following income limit:
• A 1-person household must be below $58,700.
• A percentage of homes are specifically designated for those below $24,450, meaning they earn $470 or less per week or $11.75 per hour or less assuming a 40-hour workweek.
• A 4-person household must be below $83,900.
• And a percentage of homes are specifically designated for those below $34,950, meaning they earn $672 or less per week or make $16.80 or less per hour for a 40-hour workweek.
“This is a once in a lifetime opportunity for Lansing civic leaders, the Ingham County Landbank, REALTORS, lenders, non-profits and our other HAND partners to offer buyers the chance to own a newly renovated home for less than the cost of rent,” said City of Lansing Human Relations and Community Services Director Dr. Joan Jackson Johnson.
“Most importantly, we want people to understand this campaign to sell 25 previously foreclosed homes that are now picture perfect and on the market represents a ‘hand up’ – not a ‘hand out,’” Dr. Johnson said.
To learn more, visit www.inghamlandbank.org.
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