Fairfax County's deal to offer foreclosed homes to County Workers (Alexandria: real estate, foreclosures)

[TrippingJay]

The Washington Post released a story about Fairfax County considering a deal where they would offer about 100 or so county workers a chance to purchase many of the foreclosed homes in Fairfax County.

The story is here: washingtonpost.com

Personally, I think this would benefit many county employees such as teachers, police officers and firefighters who have been priced out the high real estate prices in the region. One of my best friends is a Math Specialist with Fairfax County Schools and has stated on numerous occasions that he and many of his collegues have considered relocating to more afforable areas so they can live in the same area as they teach; which many cannot do presently.

As it is, a majority of the foreclosures have occured in some of the more dilapidated neighborhoods in Herndon, Springfield, Alexandria and Centreville/Chantilly. Most people have avoided these neighborhoods as the quality of residents living there are low-income or immigrants ( both illegal and legal). However; if county workers were to move into these neighborhoods, these areas would likely be more desirable places to live in as the quality of people living there would have improved.

However; I can see some problems with this in terms of who would be eligible for these deals and whether or not the county wants to extend itself in buying property given the current state of affairs.

[springfieldva]

Overall, I think the plan is well intended, but I wonder how many county employees would actually take advantage of it. After all, the foreclosures (and resales in general) are already well priced and interest rates are already low even without the plan - those who are in the market to buy should be able to.

I think we need to give the housing market a little more time recover. As Mr. Herrity pointed out in the article, there do seem to be qualified buyers for many of these properties. In my view, if the county does give help, it should be directed at the hardest hit communities. The communities with the greatest need. And, I don't know if that can be determined just yet.

[Annisette]

Originally Posted by springfieldva

Overall, I think the plan is well intended, but I wonder how many county employees would actually take advantage of it. After all, the foreclosures (and resales in general) are already well priced and interest rates are already low even without the plan - those who are in the market to buy should be able to.

I agree that foreclosures are already well-priced. How does it work? Is it because realtors buy directly from the Sheriff's office and then put it on the market? So, if you see a realtor sign in front of a house that says, "Foreclosure", then it is not a true foreclosure?

Where do auctions take place, so that you can compete with realtors for these homes?

I don't know how the process works.

[springfieldva]

I think the house is first put up for public auction for the amount owed and if there are no takers, then it becomes the property of the bank. The bank then sells these homes via realtors. The homes are sold "as is" and that gives them a good price tag. If you check the listings of foreclosures on homedatabase, you will see that many of them are already under contract.