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CHICAGO -- Cook County is launching a new program that will allow more people to become homeowners. The dark brick home in Auburn Gresham, once used as a two-flat, has been vacant for more than two years and, at times, has been unsecured, according to reports filed with the city. On the plus side, it is large, the basement is dry, there’s a bit of nice molding around some doorways and there are no signs of squatters or animals. The Crusader Newspaper Group consists of two weekly newspapers in Illinois and Indiana featuring news, commentary, and lifestyle reporting geared toward the African American community.
Through this new initiative, about 30 to 40 CCLBA properties are available to prospective owner-occupants at below-market prices. The homes, which primarily run between $50,000 and $170,000, are located in neighborhoods such as Avalon Park, Roseland and South Shore. Homeownership is one of the primary ways Americans accumulate wealth, and a recent Harvard study shows Black homeownership rates in Chicago have dropped to levels not seen since the 1960s. Launched in early 2013 by the Cook County Board, the land bank has acquired 23 foreclosed properties through either donation or below-market pricing from lenders or Freddie Mac. But several of the land bank’s properties were more in need of cosmetic changes than complete rehabs. Rehabbers weren’t as interested in less-blighted properties because the projects would not produce the desired returns.
Cook County Land Bank Authority Putting Affordable Homeownership within Reach of Residents with New Homebuyer Direct Program
Traditionally, CCLBA has sold delinquent, vacant or abandoned properties to developers. This new initiative lets CCLBA reach out directly to the homebuyers, who then can guide the development process in accordance with their preferences. Are you looking to purchase your own home but having trouble finding something in your price range?
"There's one other board-up on the block, but otherwise, it's a quiet block." Cook County Land Bank Authority Executive Director Rob Rose and Commissioner BridgetGainer, chairwoman of the land bank, at a South Shore bungalow that’s up for sale. Please click the respective link below to browse all properties eligible for the Homebuyer Direct Program as well as view instructions on how to apply for CCLBA homes. Occupancy prior to the completion of rehab depends on safety, soundness, and structural integrity. Many cities and Villages require a “Certificate of Occupancy” prior to living in the home.
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Please check with your lender or with the entity offering down payment assistance. The initiative is also meant to boost homeownership among African-Americans, who are lagging behind whites in owning homes. "This was not a beginner rehab. The house was in pretty bad shape -- a lot of water damage and mold. We took all the walls out, we took all the floors out, the basement out, the roof was redone. Everything is new," said Lavise Giles, GOA Enterprises Development. The $4.5 million allocated to the CCLBA from that settlement – the largest single award of the $70 million allotment – funded the Land Bank’s acquisition of 600+ homes – of which 200 have been rehabbed. The five lenders involved in the foreclosure settlement were Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly known as GMAC. But several of the land bank's properties were more in need of cosmetic changes than complete rehabs.
Further, the buyer will have time to complete inspections within the time period noted in the purchase and sales agreement. Yes, buyers are strongly encouraged to conduct their own inspection so that you may determine the condition of the property and level of rehab needed. Depending upon the source of funds, cash buyers typically are ready to close within 30 days. If you are working with a lender, a lender’s average closing time is days.
Cook County Land Bank Authority putting a homeownership within reach
These homes were acquired with funds allocated by Illinois Attorney General Lisa Madigan’s office after a 2012 national foreclosure settlement with the five largest U.S. mortgage servicers, the federal government and 49 state attorneys general. Homeownership is one of the primary ways Americans accumulate wealth, and a recent Harvard study shows black homeownership rates in Chicago have dropped to levels not seen since the 1960s. With this in mind, the CCLBA is offering properties throughout Cook County to prospective owner-occupants at below-market prices.
The toilet in the main floor bathroom is broken and the peach carpet smells of cats.
Cook County Land Bank To Sell Homes Directly To Homebuyers
The CCLBA’s earned income from FY2016 to FY2017, the second year the Land Bank has fostered these home rehabs, is projected to have increased approximately 125 percent. In July, the land bank's strategy took a big step forward when The PrivateBank committed $10 million in purchase-rehab financing to qualified entities that acquire homes from the land bank. Most of the homes in the land bank’s program are in Avalon Park, Roseland and South Shore. In July 2013, Attorney General Madigan’s office allocated $70 million across 54 nonprofit organizations and agencies that had submitted plans to reduce community blight caused by the subprime mortgage crisis. These funds came from Illinois’ portion of the $25 billion national settlement negotiated in February 2012 by federal authorities, state attorneys general and five of the nation’s largest mortgage servicing banks.
Funds will be returned by providing a copy of the Lender’s Notice of Denial. However, if the loan is being denied due to a misrepresentation of income, assets, and debt disclosed for the pre-approval then funds will not be returned. Available properties may be viewed on our website () by navigating to our Interactive Property Viewer.
If you are financing the purchase then yes, your offer should be accompanied by a pre-approval letter from your lender. "Either it's stuck in court, or the buyer couldn't get credit. The houses are still desirable, people wanted to live there … so there needed to be a solution to unstick it." Only 38.9 percent of African-Americans owned home in the Chicago area in 2015, compared with 74 percent of whites, according to a report from Harvard University's Joint Center for Housing Studies. Before the housing crash, almost half of African-Americans in the Chicago area owned homes. Enter the land bank's new program designed to attract prospective owner-occupants with fixer-upper dreams. We strongly encourage buyers to complete inspections prior to making an offer.
The CCLBA will turn on utilities if requested by lender; however the properties are being sold “As Is”. Buyers should pursue a Purchase-Rehab loan such as a 203K to purchase the property and complete repairs and updates. Enter the land bank’s new program designed to attract prospective owner-occupants with fixer-upper dreams.
The land bank aims to make a long-term impact on neighborhoods hit hard by the housing crisis by filling abandoned homes with homeowners, not just renters, said Cook County Commissioner Bridget Gainer, D-Chicago, chairwoman of the land bank. "The Homebuyer Direct Program will now allow us to sell directly to homeowners," said Robert Rose, executive director of the Cook County Land Bank Authority. "We are able to take these fixer uppers and offer them to homeowners to below market prices, give them a chance to build equity, and to customize it to make it their own." In July, the land bank’s strategy took a big step forward when The PrivateBank committed $10 million in purchase-rehab financing to qualified entities that acquire homes from the land bank. Other banks have donated properties and demolition funds, but PrivateBank is the first to make a direct investment with the land bank in communities, White said. Bank of America donated the property to the land bank, and this week, Alpine Capital Realty Group, a local firm that has rehabbed homes, is expected to close on the $3,000 purchase of the home and start a gut rehab.
The mission of the CCLBA is to reduce and return vacant land and abandoned buildings back into reliable and sustainable community assets. Only 38.9 percent of African-Americans owned home in the Chicago area in 2015, compared with 74 percent of whites, according to a report from Harvard University’s Joint Center for Housing Studies. But for a prospective homebuyer looking for a house with good bones, the home has potential. To facilitate the rehab of this particular home in Chicago Lawn, the Land Bank selected community-based developer Bridgette Washington. "It's a neighborhood where a lot of young professionals are buying," Jason Williams said.
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