Lakewood City Will Rehab Foreclosures to Increase Property Values

Lakewood cityThe City of Lakewood is putting new money into old homes, in the hope property values and home sales will increase.

Mayor Ed FitzGerald says Lakewood has not been immune to the housing bust. Less than a year into the project, it is already showing signs of success, he says.

Just one week back on the market at an asking price close to $140,000, the city has already received several offers.

Many local governments chose to use NSP funds to help buyers with down payment assistance or mortgage assistance, but Lakewood is trying something different, adds FitzGerald.

With a sale price slightly higher than the neighboring properties, the hope is, everyone’s property values will go up.

“The purpose isn’t for the city to make money. We acquired this house for $40,000 out of foreclosure. It is going to sell at about $140,000, but we don’t keep the profits. It goes back into the fund to try to do more and more of these projects. So, hopefully, it’s kind of a ripple effect,” FitzGerald said.

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