Do not let that name deceive you in the least. These are programs designed to help low-income families acquire the privilege of homeownership through tax dollar subsidized programs. I have often heard the word urban renewal and other zingy catchall phrases go along with it. Now while I do not profess to know all the ins and outs of this program, I do understand the meaning and the effect of the "sales price."

Over the past several years, I have watched these programs spring up new construction homes throughout the cities of Cleveland and Lorain. I have also watched these houses within a matter of a few years in foreclosure and the debtor exit stage right. However, the City of Lorain I watched a little more closely. Several houses had a brush with foreclosure and were then resold on the open market as an REO. Currently, I noticed a few built in the last several years that either are in foreclosure or will be there shortly. I did not have to ask myself why, I already knew the reasons.

However, what got me confounded was what I had seen in some of recent sales activity of these homes. In a neighborhood where the average sales price is more like $60,000 - $70,000 among owner occupied re-sales and falling; they have asked and sold at prices nearly double the amount (some over). Buyers of these homes have to qualify and be within HUD Home Income Guidelines. Fantastic! So we have low-income housing applicants moving into over priced homes in a down market on a tax-subsidized loan program. This is not just isolated to the Lorain market either. Tell me here, who really is the predator?

Matthew P. Klein, info@ohioreoexperts.com | http://www.ohioreoexperts.com/ | "Expert BPO and REO Services Combined with Quality Service and Expert Advice!"