The State Employees Credit Union has developed a new program called Secure to better handle foreclosed properties by renovating them and renting them to the public.
Rian Collins, vice-president/city executive with State Employees Credit Union in Elizabethtown, said in the past, banks would take foreclosed houses and sell them as is, usually taking a loss on the property.
He said through SECURE, the credit union is taking some of the foreclosed the houses and trying to renovate them and brign them up to the current building codes.
“Some they are tearing down depending oon their condition. Some they are renting out,” said Collins.
He said the credit union is trying to leave the neighborhood in a better condition than they found it when they foreclosed on the property.
He pointed that ion the western protion fo the state, the creift union has even torn down homes and replaced them with modular units.
Collins said for example in Durham, the credit union foreclosed on an apartment complex that consisted of duplex apartments. He said the credit union went in and rehabilitated about one city block when it had completed the renovation of the apartments.
He said the strategy is to invest money on the homes and rent them out to recoup some of the lost revenue.
Collins said that the credit union was being faced with some homes that were simply substandard and by renovating them and renting them out, the credit union hopes to regain some of its losses from the rental income.
“They are still selling some of the homes, depending on the condition,” said Collins.
He said the credit union was determining on a case-by-case basis which homes are renovated, demolished, sold or rented.
Collins said that his branch located in Elizabethtown has been hard at work on renovating a property near Elizabethtown. He said the credit union received estimates on renovating the home and estimates of the demolition of the house.
He said that based on a market analysis by a realtor, the credit union decided to renovate the home. Collins said that a home inspector visited the property and gave the credit union a list of repairs that were needed.
Collins said that Randy Andrews performed the work. Collins said the house received a fresh coat of paint on the exterior, new windows, new doors, new heating and air conditioning, new plumbing, new paint on the interior, new flooring, and new appliances to name a few of the upgrades.
“It’s nice to see the home. We’ve had some offers on the lot (before the renovation work was performed),” said Collins.
He estimates the home will be ready to rent in mid-December.
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