by Emily Canning-Dean
Reporter
Bedford -- Two houses that were once considered neighborhood eyesores are refurbished and ready for sale by the city.
Several months ago, the city purchased houses at 43 Southwick Drive and 73 William St. from the U.S. Department of Housing and Urban Development for $1 each. The houses were vacant and in disrepair, city officials said.
Sarah Anderson, a spokesperson for the city, said the houses are ready to be sold. She said the city will sell the houses by way of a sealed bid process.
From June 16 to July 18, prospective buyers can go to City Hall to pick up a bid application. They can make a bid on a house, seal it, date it and turn it into the city.
On July 21 the city will open the bids at a public forum and award each property to the highest bidder. Anderson said the minimum bid set for the Southwick property will be $89,900. The minimum bid for the William property is $79,900. The houses will be sold to the highest bidder. If there are two or more bids of equal value, the person who bid earliest will be awarded the house.
Building Commissioner Phil Seyboldt said the city has invested about $35,000 into each house by repairing siding, replacing windows, remodeling kitchens and bathrooms, replacing hot water tanks, and painting, carpeting and tiling all the rooms in the house.
"We use Bedford contractors whenever we are able," Seyboldt said.
Seyboldt said buyers will receive a 10 percent discount, which they will be allowed to keep, if they use the house as their primary home for five years.
"If the house costs $90,000, for example, the buyer would have an $81,000 mortgage and the city would hold a $9,000 second mortgage which would act as a promissory note," Seyboldt said. "If the buyer lives in the house for five years, the note is dismissed. If not, it must be paid."
Seyboldt said the city set up the plan to encourage owner-occupied housing in the city. He said the city owns seven HUD houses currently and officials are working on improving the other five so they are ready to sell.
"The city is not allowed to make a profit off of this program, so any money we make after all of the HUD homes have sold, we could use to purchase bank-owned homes and fix those up," he said.
Seyboldt said he knows of about two dozen HUD-owned homes in the city.
For more information, call Anderson at 440-735-6536.
E-mail: ecanning@recordpub.com
Phone: 330-688-0088 ext. 3166