Friday, February 21, 2014

Preservation Perspective: Why we have 1000.00 Fixers in Cincinnati.

Readers may recall I recently blogged about a 500K "fixer' in San Francisco and why San Francisco , who embraced historic preservation thrives and has some of the most expensive real estate in the US, and why, we in Cincinnati, do not.

2 bedroom, Double lot, late Victorian
could shine again...with the right owner

So today we explore how the very people supposed to help communities now hurt them. HUD continues to "dump' its portfolio of foreclosures at ridiculously low prices. Case in point this home at 1902 Knox. This home sits in Knox Hill and is just west of the 1800 Block of Knox, which is the Knox Hill Core historic redevelopment zone and has several homes under restoration. This 2 bedroom  home is offered by HUD, via its 'home path' program for 1,030.00 (NOT A TYPO). This program is designed to give people who want to own a home the opportunity. Low interest 203K loans are often available to 'fix' problems and the theory is that we bring owner occupants back into neighborhoods.

However this program is rampant with fraud and abuse. Slumlords find "straw buyers' or simply state that they will in fact live there in order to get the low price then turn around and rent the house out and the slum cycle continues. Monies get pocketed and neighborhood suffer.

We however closely monitor these sales and if someone tries that here? We will turn them in. Chances are there will be multiple offers on this house. It makes good sense with 2 million in restoration going on down the street and a New infill homes coming in soon.

But how do we get where a house sells for 1 grand? The mortgage crisis is part of the blame and selling house to anyone who could breath. This house sold for 20,000 in 1999. Sold to a problem property owner who lived there and didn't maintain the property and eventually simply stopped making payments. The house sat in "phantom foreclosure" for a good 2 years with him living in it.

If there is a "bright spot" it may be that someone seeing what is going on in our neighborhood and the drive and determination to bring the community back, may actually buy it. Its a solid house and will need a lot of love to bring back but if you strip the vinyl, restore that front porch and do a decent amount of work yourself you could have nice home for every little money part of a community that gives a damn about what happens in it The lady who bought and is fixing up her house two doors down will like that. In fact the neighborhood would probably throw you a party.

If you are that kind of person, who want to OWN a home, call up your realtor and make a difference too. You will NEVER find a house this cheap again in Knox Hill.

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