City giving $15K loans to those buying foreclosed homes

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You must qualify for loan

PHOENIX - The City of Phoenix is offering up millions in free money but the money is meant for folks who are buying a home and it could mean thousands in your pocket.

From a perfectly manicured yard, Suzanne Thraen says she has watched her neighborhood deteriorate. She says, "It's the empty houses that aren't being cared for."

Thraen is tracking the hundreds of foreclosures in her west Phoenix neighborhood block by block. She explains, "Eight homes on a block. That's a lot of homes."

Now a lot of money is going to help get those foreclosed homes get off the market. A long line formed on Monday night. All the people were trying to get their share of millions of dollars Congress sent our way.

The City of Phoenix is now handing out $15,000 loans for people to use toward buying a foreclosure, which is a great opportunity for renters.

So who is eligible? You have to attend an 8-hour class, must have decent credit, you have to invest $1,000 of your own money and you have to live in the home.

The city is not giving money to people buying foreclosures as investment properties. For many in the crowd, the current market combined $15,000 from the city could be their big chance.

Calvin Coleman, who hopes to buy a home, admits, "If you can find a cheap home, 70K, and get 15 off it, that's a real good deal at this time."

It is a good deal for the potential buyers and current homeowners like Thraen who is looking to fill all those vacant homes in her neighborhood. She says, "For us that'll be a blessingt hat brings stability and sustainability to a neighborhood."

The catch is that this is a loan. You have to pay the $15,000 back when you sell.