Usually, the common practice of purchasing, renovating and eventually selling Miami Beach real estate that’s gone into foreclosure is reserved for market savvy buyers looking to make a profit, a process better known as house flipping. That’s why it comes across as a little odd that local governments are now doing their own house flipping via a program called the Neighborhood Stabilization Program (NSP).
Last week Miami-Dade County began promoting its collection of properties found largely in the southwestern region, stressing the heavy discounts attached and the financial resources available in order to assist a first time buyer with a purchase. Using federal funds given in 2008 as part of a grant by the U.S. Department of Housing and Urban Development, homes are being purchased mostly as a means of staving off the damaging aftereffects of foreclosures. Apparently, Miami Beach homes have yet to qualify.
If the idea sounds appealing and you aren’t interested in owning Miami Beach homes, keep in mind that certain requirements must be met in order to buy a home under the NSP. The deep discounts and new renovation may be worth getting “off the fence”.