What is "The Inland Empire Economic Recovery Corporation"?
December 10, 2008
A headline in yesterday's Press Enterprise Newspaper discussed a proposed organization that would partner with county and city governments. The plan is to purchase foreclosed housing and resell them after the houses had been rehabbed.
For those of us in the real estate business longer than 20 years, the concept being proposed is not an entirely new one. Back in the downturn in the 1990s, there were several private companies who purchased the repossessed properties, rehabbed them and resold them. Perhaps some of you who read this blog can remember these companies. I believe that one of them was recognized for the enhancement to the community.
The purpose of this proposed "Inland Empire Economic Recovery Corporation" would be "to mitigate the fire sale of the region's foreclosed homes as the Federal Deposit Insurance Corporation sells off the assets of failed banks." According to the article in the Press Enterprise, there are about 4,2356 homes in San Bernardino County alone that are bank owned. Riverside county is that they have begun there own project and will continue with it. It is also not clear just how many cities would wish to participate.
The FDIC is already bundling homes for auction and private investors are poised to purchase more than 30 of these homes for the as yet established corporation. On December 16, an item is on the agenda of the San Bernardino County Board of Supervisors for consideration to authorize a $2.5 million contract with the proposed organization.
Hopefully, this proposed corporation will help to eliminate the blight that is caused by vacant, foreclosed homes create.
A headline in yesterday's Press Enterprise Newspaper discussed a proposed organization that would partner with county and city governments. The plan is to purchase foreclosed housing and resell them after the houses had been rehabbed.
For those of us in the real estate business longer than 20 years, the concept being proposed is not an entirely new one. Back in the downturn in the 1990s, there were several private companies who purchased the repossessed properties, rehabbed them and resold them. Perhaps some of you who read this blog can remember these companies. I believe that one of them was recognized for the enhancement to the community.
The purpose of this proposed "Inland Empire Economic Recovery Corporation" would be "to mitigate the fire sale of the region's foreclosed homes as the Federal Deposit Insurance Corporation sells off the assets of failed banks." According to the article in the Press Enterprise, there are about 4,2356 homes in San Bernardino County alone that are bank owned. Riverside county is that they have begun there own project and will continue with it. It is also not clear just how many cities would wish to participate.
The FDIC is already bundling homes for auction and private investors are poised to purchase more than 30 of these homes for the as yet established corporation. On December 16, an item is on the agenda of the San Bernardino County Board of Supervisors for consideration to authorize a $2.5 million contract with the proposed organization.
Hopefully, this proposed corporation will help to eliminate the blight that is caused by vacant, foreclosed homes create.
posted by shirley harry at 4:31 PM
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