County To Give $30,000 To Buy Foreclosed Homes

The foreclosure crisis is so bad in Osceola County that leaders are willing to hand people up to $30,000 a piece just so they'll buy foreclosed homes.

In 2008, one out of 10 houses in Osceola went into foreclosure. The county hopes $14 million from the federal government will help.

Other cities are using their stimulus dollars to rehab and re-sell foreclosed properties. Osceola County is hoping, by giving money to homeowners, they'll be more likely to buy a foreclosed home.

"Most of all these homes are empty," Poinciana resident Manuel Garcia said. "This is the only one on this side of the block that people are living in."

Garcia has lost a number of his Poinciana neighbors over the last four years.

"Half the time they don't cut the grass. There are snakes running through here," he said.

Poinciana has been particularly hard hit by the foreclosure crisis, as has Osceola County's Buena Ventura Lakes community. That's why the county has plans to use $14 million in federal neighborhood stabilization dollars to give down payment assistance to buyers willing to purchase a foreclosed home.

"We project this money can serve 150, maybe more. The money will go directly to the home buyer, up to $30,000 depending on their income," Osceola County Chairman John Quinones said.

Low to moderate income households will be eligible to receive a no interest loan from the county. If families live in their homes long enough, they will never have to pay that money back.

Also, people don't have to be a first-time home buyer and or a resident to get the money. But the foreclosed home the person buys must be in Osceola County and there are plenty to choose from.

"What we're trying to accomplish is how we can stretch that money and serve as many citizens, especially in those affected areas," Quinones said.

The county is not distributing the funds yet. There will be workshops in September to determine all the guidelines. However, distributions of down payment assistance could begin by the end of the year.

Florida ranked fourth in the nation for foreclosure filings in July and had the second highest foreclosure rate behind California in 2008. Realty Trac says Florida homeowners accounted for nearly 17 percent of the nation's more than 2.3 million foreclosure filings in 2008.

Analysts say the rising unemployment rate is only fueling the foreclosure crisis.