Chicago Urban League News Coverage
“The Housing Expert”
House auction an opportunity to stabilize communities
By Margaret Wooten
Director of Housing, Chicago Urban League
In the past, I’ve shared with Defender readers my concerns over the long-term negative economic impact the mortgage crisis could have on African Americans through Chicago Urban League President Cheryle Jackson’s column. One thing I know for sure: Just because foreclosures aren’t leading the news doesn’t mean the crisis is over. In communities of color, the record loss of homes adds up to a loss of economic power. And we’ve only begun to feel the impact, I’m afraid.
So, today I’m happy to tell you how the Chicago Urban League is working to flip the script on the foreclosure crisis and provide African Americans with opportunities to invest in and take back their communities – one house at a time.
On Saturday, August 22, the Urban League will team up with auctioneers Hudson and Marshall and their marketing partner, Atlanta-based APD Solutions, to auction off some 70 foreclosed homes in Chicago. The auction will be held at 1 p.m. in the Grand Ballroom of the Chicago Marriott Southwest at Burr Ridge, at 1200 Burr Ridge Pkwy.
So, how exciting is this, you ask? Well, it isn’t everyday that a non-profit organization gets an opportunity to bring an auction like this to the African American community. The economic misfortunes that have led us here are no reason not to take advantage of this terrific investment opportunity, one that has the added benefit of stabilizing communities.
In my view, this is a history-making partnership. These types of auctions have been going on all along. But most of the time, the Black community never hears about them.
Most of the 70 homes on the auction block are located in African American communities hard hit by foreclosure. They are valued at between $10,000 and $340,000. Financing will be available onsite, but participants are encouraged to get pre-approved by a lender. You can register for the auction and view the homes online at http://www.hudsonandmarshall.com/. You must register to be eligible to bid.
The auction isn’t just for buyers who plan to actually live in the home. I see it as an opportunity for investors to increase the number of rent-to-own opportunities in certain areas so that people who have been displaced by foreclosure can remain in the communities while they get back on their feet.
The pool of the displaced grows everyday, and Illinois is among the top 10 states with the highest rates of foreclosure. In July, foreclosure filings were up 32 percent over the same period last year. Banks repossessed 87,000 homes, according to RealtyTrac Inc., a foreclosure-listing firm. More than 360,000 households, one in every 355 homes, were threatened with foreclosure, the highest monthly total since the firm started publishing the data four years ago. And, despite government incentives, banks continue to be resistant to modify loans, extending only 400,000 offers to 2.7 million eligible borrowers who are more than two months behind on payments, Realty Trac found.
“In these challenging economic times, families more than ever are searching for affordable housing. Hudson and Marshall is proud to partner with local groups on sustainable programs which help identify buyers to turn foreclosed properties into homes and help breathe new life into Chicago neighborhoods. This is a first step toward stabilizing home values across the country,” said Dave Webb, principal at Hudson and Marshall.
Now, if you have never attended an auction and are unfamiliar with the process, do not be intimidated. It’s really simple. Just come to the workshop and mock auction that will take place at 11 a.m. at the hotel on the day of the auction and get a quick tutorial on auction etiquette. We had a workshop on Tuesday at the Urban League to help people prepare, as well.
Most importantly, identify your house ahead of time and make an appointment to see it with an inspector, said James Cromartie, business development director for APD Solutions. The listing agents’ information is available online. Also, another cool thing about auctions is that the audience sets the first price, not the auctioneer. “So conceivably, if the bidding starts at $1,000, I could be the high bidder. I’ve seen it happen,” Cromartie said. Bid increments typically go up by $250 or more, he added.So, come out Chicago and get your bid on.
FLORIDA MUNICIPALITY PURCHASES REO FOR ITS COMMUNITY DEVELOPMENT PROGRAM
FLORIDA MUNICIPALITY PURCHASES REO FOR ITS COMMUNITY DEVELOPMENT PROGRAM
Media Contact: Crystal Wright
Baker Wright Group
202/829-0848, crystal@bakerwright.com
Across the country municipalities are aggressively purchasing foreclosed homes, rehabilitating them into affordable housing and re-selling them as part of a community program to revitalize neighborhoods. On August 4th, as part of its seven city Florida auction, Hudson & Marshall sold a home in Panama City to the city. The home was purchased by the local government through its participation in Florida’s State Housing Initiative Partnership (SHIP) Program, which provides funds to municipalities to produce and preserve affordable housing for very low- to moderate-income families.
Panama City government plans to re-sell the property purchased through Hudson & Marshall’s auction for exactly what it cost the city to purchase and refurbish the property. A city official, who attended the Florida auction, said the government hopes to buy even more bank-owned residential properties at future Hudson & Marshall auctions to support its community development efforts. Hudson & Marshall looks forward to helping Panama City and other local governments purchase foreclosed homes and turn them into housing for buyers in need.