Buying A Foreclosure

Foreclosed homes can be an opportunity for homebuyers to leverage the resources they may have for a home purchase.  However, there are potential pitfalls that could occur as well, but many resources that can assist you through the process. 

Real People, Real Stories

The following links feature people and organizations that discuss what it takes to buy and renovate a foreclosed home, including what assistance is available from Take Root Milwaukee Members.

• Milwaukee Magazine Feature, March 2011

Layton Boulevard West Neighbors Home Tour, November 2011:

• Fox 6 Story One, November 2011
• Fox 6 Story Two, November 2011

City of Milwaukee Foreclosed Home Purchase Program

• Are you interested in receiving a forgiveable loan for up to $30,000 from the City of Milwaukee toward the purchase of a vacant and foreclosed property for homeownership purposes? Scroll down or click here for more information.

• Are you interested in receiving a forgiveable loan for up to $17,500 per unit toward the purchase of a vacant or foreclosed property for investment purposes? For more information, click here.

About the Neighborhood Stabilization Program (NSP)

The Housing and Economic Recovery Act of 2008 provided the City of Milwaukee with $9.2 million in federal funding for the Neighborhood Stabilization Program (NSP) to address foreclosed properties in Milwaukee neighborhoods impacted by the foreclosure crisis. With input from the Milwaukee Foreclosure Partnership Initiative (MFPI), the Common Council Special Joint Committee on the Redevelopment of Abandoned and Foreclosed Homes, and the community, the City prepared a plan to guide efforts to utilize the $9.2 million in NSP Funding. 

The following guidelines may help you decide if you are a good fit for some of the special homeownership assistance programs being offered through the City of Milwaukee:

• Generally, buyers must contribute approximately $1,500 from their own funds towards the transaction. (Actual requirement: 2% of total project cost or $1000, whichever is greater)
• Need to have satisfactory, established credit or non-traditional credit references such as utility bills, cable or cell phone bills.
• Must have a verifiable, stable source of income sufficient to cover existing debt and the new home payment.  
• All judgments must be paid prior to home purchase, and for those who have experienced recent bankruptcy, must be 2-4 years from discharge.
• Potential buyers must attend 8 hours of home buyer education from a Take Root Milwaukee counseling agency PRIOR to having an accepted offer to purchase.
• For the NSP program, must choose a vacant foreclosure within the qualifying areas.  Click here to see a map.

Other Homebuyer Assistance Programs

There are many other home buyer assistance programs available such as Employer-Assisted Homeownership (EAH), Down-payment assistance, Rehab assistance and more!  We encourage you to visit or talk with one of our housing counseling agency members to see what programs you may qualify for.