Friday, Nov. 21, 2008

Fort Worth to offer loans for foreclosures

Staff report

The Fort Worth City Council has approved spending federal grant money to help buyers into foreclosed homes in the Keller school district and other areas.

The council on Nov. 11 signed off on a $6.3 million program for the seven ZIP codes hardest hit by foreclosures, two of which – 76248 and 76137 – make up a large portion of the Keller district.

Under the program, prospective buyers are given $20,000 loans to pay for closing costs, down payments or repairs. If they live in the home for five years, the loan may be forgiven.

The seven ZIP codes have seen 1,841 foreclosures from September 2007 to October 2008, nearly 49 percent of all foreclosures in Fort Worth during that period. Foreclosures in the 76248 and 76137 ZIPs total 541.

The average foreclosed home is 26 years old, 1,909 square feet and valued at $120,000.

A U.S. Department of Housing and Urban Development grant was used to fund the program.