Want to buy a house at half price?
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The Good Neighbor Next Door program is administered by the Federal Housing Administration. Buyers in the program pay half the
house’s appraised value and commit to live there for three years, but there are some restrictions on who can buy them and where the home are located.
Four things to know about the Good Neighbor Next Door program:
1. It’s not available to everyone: Only Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can participate. Here’s the complete requirements to qualify.
2. Revitalization areas: According to the web site Revitalization Areas are HUD-designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote “the revitalization, through expanded home ownership opportunities, of revitalization areas.”
3. Pricing: You have to pay the HUD listing price when bidding on a Good Neighbor Next Door Home. The 50% discount is then taken off of this price.
4. 3 year occupancy required: The buyer gets a “silent second” mortgage for the other half of the sales price. This is a loan that has no principal or interest payments, and if the buyer remains in the house and keeps up his payments for three years, that second mortgage is forgiven.
If the buyer moves out of the house within three years, the program can charge for a prorated portion of the silent-second mortgage. Homeowners are required to certify on a yearly basis that they still live in the home.
The owner can sell the home after 3 years and keep any equity or appreciation in the home.
There are currently 8 HUD homes in Colorado that qualify as part of the Good Neighbor Next Door Program, including one in HUD Home in Colorado Springs on:
3613 Queen Ann Way Price is $85,000 MLS 604877 1102 square ft Townhome
Bid Submission is due on 12-16/2010
To find out more information about Colorado Springs Foreclosures, Call ……
Kathy (719-287-1049) KTorline@msn.com
