Stimulating Sale of Brooklyn Foreclosures

Brooklyn is one of the five main districts of New York City with a population of almost 2.5 million people with an annual median home income of $32,135. The Brooklyn foreclosures provide property investors and agents, and home buyers a very big opportunity and attraction to invest in cheap homes in the well planned, wealthy Brooklyn townships. It is the minority residents who are facing foreclosures because of their inability to pay up mortgage loans. Much as this contributes to the rising trends of Brooklyn foreclosures, there has been a considerable fall. Foreclosures in the first quarter, 2008 were 140 and 83 in the last quarter of 2008 falling further to 37 in the first quarter of 2009.
Malpractices in lending have become a big threat to many home owners who have lost their investment equity and are facing foreclosures. In order to provide such home owners assistance, the city council set up an operation for the prevention of foreclosures. They provide litigation facilities, referrals and advice in workshops for defending against greedy lenders. Three fourths of home owners spend more than half their yearly income on housing costs. With job losses on the high, it is therefore necessary to stimulate falling sales of Brooklyn foreclosures and bail out home owners.
In an attempt to do just this, the Brooklyn city council plans to integrate safety measures and monetary assistance to home buyers enabling them to make their investments. Some steps planned are:
•    Using a unique method of funding, home buyers will be loaned $10,000 as interest-free funding to make their down payments on registered, vacant homes on Brooklyn foreclosures
•    Repayment of these loans is waived if the buyer continues to live in these homes for a period of 5 years. This will increase housing rates and occupancy of vacant foreclosed homes
•    They also offer grants to repay home improvement loans up to $7,000
•    More tan 100 buyers will be funded to sell many hundreds of foreclosed homes
•    A special law of judicature lets the city council raise such funds from tax increments
•    The buyer has to legally qualify with the council to get their help. They must have excellent credit rating; have an income level equal to the median income in metros; must only take a fixed interest mortgage
Such a program can attract many new home buyers into buying more homes on Brooklyn foreclosures. The incentives will prove to create productive and proactive buying. However, a problem may still crop up with down payment incentives. Many buyers who do not make a down payment investment may still default mortgage payments if they lose their job or other sources of income.