Foreclosed Homes Program
The Housing Finance Authority of Clay County partnered with the first builder in the Foreclosed Homes Program in January of 2010. There are currently 3 builders approved under this program. The difficulty in this program has increased significantly due to the lack of quality inventory and the increase in competition/market activity in this area.
Criteria for Builder Participation
- Must be a State Certified Contractor
- Must be a full time builder
- Must have experience in renovating distressed properties
- Must live/work in Clay County or have substantial ties to the community
- Must Carry Builder’s Risk Insurance and name the Authority as a “loss payee”
Criteria for Property being purchased
- Must be a Foreclosed/REO Property or
- Vacant “short sale” property
- Resale Price should not exceed $185,000.00
- Income levels of buyers purchasing a property after its renovation should be consistent with bond program guidelines.
Funding
The Authority provides to the approved builder the funding to purchase the distressed property, along with all of the closing costs. The Authority charges no interest on this loan, but does charge a $2,000 flat fee. This fee is paid up front at closing and is financed into the loan along with the closing costs. The Authority required that the loan be personally guaranteed by the builder. The loan is secured by a Note and Mortgage on the property. The terms of the Note do not require the builder to make payment, nor does it carry any interest, instead a flat feet of $2,000.00 is charged at the time of closing, this fee is financed into the closing costs. The loan is made for a one year period.
The Builder must have its own funds to make the necessary renovations.
The loan is paid back to the Authority when the property is sold to a new buyer. Buyers should meet similar qualifications that would be required under a bond program.