Millions in free money for foreclosures about to expire

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by JASON WHITELY

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WFAA

Posted on July 22, 2010 at 10:09 PM

Updated Sunday, Jul 25 at 7:37 PM

DALLAS — Millions of dollars in assistance to purchase foreclosed homes in North Texas is about to expire, and most of it remains unused, according to Enterprise Community Partners, Inc.

The affordable housing non-profit secured $6 million to distribute to families who purchase foreclosures in 13 towns, mainly south of Dallas-Fort Worth. It's enough for about 120 clients, but so far only two dozen have pre-qualified for the funds.

The free money is in the form of home loans with zero percent  interest, or up to $30,000 for a down payment or closing costs on a foreclosure.

"Again, $30,000 is a lot of money, and you can use a portion of that money to even rehab the house to bring it up to an acceptable level," said Kim Weaver-McDonald of  Enterprise Community Partners. "It's a great program; we just need more homebuyers."

The money is only available to purchase a foreclosed home in Cedar Hill, Duncanville, DeSoto, Lancaster, Midlothian, Waxahachie, Granbury, Greenville, Cleburne, Forney, Corsicana, Weatherford, and Rockwall. Those cities have some of the highest amounts of foreclosure.

According to a search Thursday on foreclosure.com, there were more than 1,230 foreclosed homes for sale in those communities.

Enterprise Community Partners said time is running out to call and reserve some of the $6 million. Any unspent money returns to the government after August 31.

It's all stimulus money which is part of the Neighborhood Stabilization Program designed to keep foreclosed homes from turning into vacant eyesores and contributing to crime in the community.

"We need that money to be used," said Marie Gordon a Realtor with Century 21. The federal stimulus has boosted her business. Eight-percent of the homes she sells are foreclosed.

Gordon thinks foreclosed homes will still sell, but without free money focused on the southern sector, they might not be as attractive.

To learn more about the program call 1-877-839-6771 or go to www.enterprisecommunity.org/txnsp.

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