FLINT, Mich. – Dort FCU has come up with a creative way to dispose of two of its REOs obtained through foreclosure in this depressed auto city; it’s going to give them away to needy families.
"Every year our board chooses something to do to help the community, and we’re well-capitalized at over 21%. The last two years we gave out a $1 million bonus dividend," said Jenny Ludwigsen, spokesperson for Dort, a $370 million credit union which got its start in 1951 as the credit union for AC Sparkplug.
While the credit union continues to thrive, the city is in a deep recession. The credit union’s original sponsor, now Delphi Auto Parts, is in bankruptcy and shutting down its flagship plant across the street from the credit union. "This year, given the situation here in Flint, with unemployment over 10%, in the home of General Motors, and all of the economic problems here, we decided this is something we want to do, and we have the ability to do it," Ludwigsen told The Credit Union Journal yesterday.
The credit union has taken possession of the two homes, an 1, 800 square-foot ranch in Flint, and a 1,000 square-foot, house in nearby Davidson, and renovated them, even adding a bedroom to the two-bedroom Davidson home. The value of the two properties is about $300,000.
Members and non-members in the credit union’s four-county service area are being invited to submit a 16-page application, complete with an essay, on why they should get the home.
Applicants must make at least $17,000 a year and no more than $37,000, exhibit enough financial resources to pay upkeep and taxes, and not have filed for bankruptcy within the last three years. They also cannot own a home now.
The winners will be chosen from a panel consisting of representatives of six local non-profits: the Shelter of Flint, Salvation Army of Genessee County, United Way of Genessee County, Food Bank of Eastern Michigan, Old News Boys of Flint and Whaley Children’s Center.
While the winners will own the house outright, they will be required to sign what is known as a forgivable mortgage, which means if they sell the house after one year they only get 25% of the proceeds, and 50% after two years–for four years. That is to ensure that they live in the home.
