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Lee Counties Buying Up Distressed Homes
In an effort to "rebuild" the housing economy in Southwest Florida, Lee Counties are using monies received from a government program to buy distressed or foreclosed homes. The overall plan is to buy the homes at a little less than their appraised values, fix them up, and resell the homes (at a fair price) to low to middle-income families in need.
The Neighborhood Stabilization Act is the program in question, and is designed to help increase home and property values. Lee County has received approximately $18.2 million in government funds to buy these foreclosed homes, and has already purchased 8 homes within the greater Fort Myers area. Individually, Fort Myers plans on purchasing at least 35 more homes, and Cape Coral intends on buying about 85 (on top of the 7 homes already purchased). Lee County has also bought 16 condo units within Lehigh Acres.
While the intent of this program is wonderful, investors with cash to burn have been storming the foreclosure market, making it extremely difficult for the county (or anyone else, for that fact) to snap up the distressed properties. Additionally, the county has to adhere to government guidelines that require a purchase to be 1% less than the home's appraised value. This makes it easier for an investor to offer more money, and secure the property for themselves.
Still, homes are being purchased, and deserving families will be able to own a home that they may not have thought would be possible. It's this reason that keeps the county going.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
Information for this article courtesy of Naples Daily News, and Florida Realtors.
