Habitat for Humanity International is helping buying foreclosed homes

Habitat for Humanity has so far focused on building houses for the needy but the present crisis has made it foray forth into purchasing foreclosed units, repairing them and offering them for sale to those with low income.

Habitat for Humanity International is known for providing new homes for the indigent ever since the previous President Carter became one of its noted volunteers. He put on gloves and raised a hammer in the 80s to help in the building of new units for the poor.

Currently Habitat is overhauling its style of work because of the foreclosure crisis. Questionable lending methods have left thousands of foreclosed properties begging to be sold. Habitat is acquiring more and more houses, sprucing them up and selling them to the needy. The loans are advanced without any interest to those who do not qualify for it. The programme is dubbed Neighborhood Revitalization Initiative. It is the way in which Habitat is addressing the national housing crisis.

Mark Andrews of Habitat said, “We have, for most of our existence, really focused on new construction. But it’s becoming more and more clear to us on a national scale that new construction isn’t always the best fit.”

In Los Angeles Habitat, with the help of this strategy has been able to stop losing money on the houses it constructs – something commendable considering the depressed mood of the real estate market. Construction of a new house may cost Habitat anything from $250,000 to $300,000 inclusive of price paid for land, permits etc.

But the final product might be valued at much less by the appraisers said Erin Rank of Habitat branch of Greater Los Angeles. But alternatively Habitat can purchase a house for something below $200,000 and get a break even after spending $40,000 on repairs.

Among others these measures have brought good news to 34 year old Claudia Maria Velasquez and her 36 year old husband Jose Javier Velasquez who is a truck driver. Today they are on the verge of owning their own nest. Right now they squeeze into a single room with their two sons – one of whom is autistic.

The cramped quarters make the boys frequently run out into the streets. Recently squatters stole from their electric connection. All this came to an end only when the house got burnt. For them the Habitat programme will bring about a great change.

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