Federal incentive program intended to help resell foreclosed houses

On Saturday morning, Briea Williams of Ozark, Mo., drove 270 miles so she could arrive by 8:30 a.m. to attend a class for homebuyers in Cape Girardeau.

A high school English teacher, Williams, 25, is hoping to buy her first home by taking advantage of the federal Neighborhood Stabilization Program, which provides federally funded incentives to purchase foreclosed houses.

The long drive was worth it because the training, which covers all aspects of homebuying from writing a household budget and savings plan to dealing with lenders and finding an agent, is mandatory for her to qualify for the program. She couldn't find a convenient time for a similar class in Springfield, Mo., and to obtain the training in Kansas City, Mo., would have cost $300.

"One thing that really helped me out was the budget session," she said. "I have learned that I should really tighten up my ropes. If I laid off on entertainment spending, I could save quite a bit of money."

4-Sight Counseling of Cape Girardeau, a HUD-approved housing resource agency, is providing the training on the first and third Saturday of every month. There's room for 25 people in each class, although Saturday, when the second class was held, only Williams and Joseph Kilhafner of Jackson, a Wal-Mart employee also trying to use the program, were on hand.

"What this class is designed for is to sit down and actually say that the information I am going away with today is going to help me buy a home," said Audrey Franklin, a housing counselor and licensed real estate agent who leads the daylong Home Ownership Workshop. "They may not be ready to purchase a home and their long-term goal may be to buy a home but this helps them meet short-term goals of getting out of debt and, with continued education, they can afford a house."

The Neighborhood Stabilization Program, or NSP, being administered by the Missouri Housing Development Commission, helps people with moderate incomes buy foreclosed homes by covering 20 percent of the purchase price up to $14,999, said Dave Weston, a loan officer for Capaha Bank.

NSP funds aren't a loan, but they do create an obligation for the buyer, Weston said. If a buyer lives in the home for five years, the debt is forgiven. If the buyer moves, a prorated amount is repaid.

Finding buyers for foreclosed homes can support property values by filling vacant buildings and support families by giving them affordable places to live, Weston said. Coupling NSP funds with a tax credit available for first-time buyers provides up to $23,000 toward the purchase, he noted.

The program is available to individuals or families with an income below 120 percent of the median household income. For Cape Girardeau County, income limit is $54,314 per year based on the 2007 estimated median of $45,262.

The program was worth setting aside a Saturday, said Kilhafner, who has applied to use NSP funds to make a purchase. "Part can be available for closing costs, part for downpayment assistance, and I can get a decent home," he said.

rkeller@semissourian.com

388-3642

Pertinent Address:

937 Broadway, Cape Girardeau, Mo.

Want to go?

What: 4-Sight Counseling\'s Home Ownership Workshop

When: First and third Saturday of each month

To Register: Call 4-Sight Counseling at 334-7995

Website: http;//4sightcounseling.org