Foreclosed homes get federal bucks

Five cities received upwards of two millions each to buy and revitalize homes in certain neighborhoods. That translates into about 20 homes for Portsmouth alone.

Kathy Warren Director of Development is thrilled with Governor Kaine's announcement. The $2 million is part of the federal government's $17.5 million neighborhood stabilization funding.

To apply, Warren compiled a list of homes in various states of foreclosure in Prentis, West Haven and Craddock. The theory put first time home buyers in neighborhoods to turn the tide on the wave of recent foreclosures.

"The more vacant structures you have throughout a community...tends to bring a community down at a quicker rate and lends to the decline of that neighborhood," says Warren.

Warren says the city will purchase the homes 15% below fair market value. While the city fixes up, home buyers will be lined up.

"In many cases, these homes are in very good shape. So we'll have a little work to do to them in order to get a homebuyer in them."

WAVY.com checked with other cities awarded money and found that Suffolk received $971,444 and Newport News $700,000. Norfolk received more than $1.7 million for a dozen homes in Fairmont Park and Ballentine Place. Hampton $2 million for 35 homes in Old Northampton and two sections of Wythe.

It should take 18 months to complete the process. If you're interested in one of these homes, contact the Housing and Redevelopment Authority in your area.