LEHIGH ACRES, Fla.-Slowly but surely NCUA has been moving off its books hundreds of houses that it was forced to take title to here and in nearby Cape Coral.
NCUA Director of Public Affairs John McKechnie told Credit Union Journal that the regulator is selling about five homes per week at an average price of $112,426. NCUA was forced to take over the properties after the failure of Norlarco in early 2008, which had been the lead lender (along with CUs to which it had sold loan participations) in the developments.
The regulator has also been able to rent out about a third of its available properties - no small feat considering Lee County's economy is driven mostly by construction, and it has one of the highest unemployment rates in the Sunshine State.
The county's Neighborhood Stabilization Program is helping to alleviate some of the weight of the properties, many of which have lost upwards of 70% of their value from the peak of the housing bubble.
"In connection with this program, there are 12 NCUA-owned units under contract with Lee County, with a similar number expected over next two to three months," McKechnie told Credit Union Journal.
While it appears demolition will not be necessary to reduce inventory as once speculated, (What's Next for Foreclosed Homes Currently Held by Federal Agency?, June 1) NCUA will likely be dealing with the properties for years to come. Over 160 homes are currently being rented and 324 are still sitting on the market waiting for renters; another 312 houses are still in the foreclosure process. Lee County continues to have one of the highest foreclosure rates in the country.
Sold/closed: 305
Under Contract: 37
Rented: 162
REO/Rentals available: 324
Loans still in FCL Process: 312
Average Sales Price: $112,426
