Foster Children Benefit from Forclosures Homes

Foster children in Watsonville benefited from the wave of forclosures homes when the nonprofit Court Appointed Special Advocates (CASA), which has been helping them, was able to afford the price of one of the forclosures homes in the area.

Due to the dropping prices of forclosures homes, CASA was able to buy a foreclosed property measuring 3,500 square feet along Freedom Boulevard across Callahan Park.

The large foreclosure home would become a large shelter for the foster children who have been cramped in an office space of a former hospital building.

Nancy Sherrod, executive director of CASA, said the large home would accommodate around 180 foster children served by the nonprofit every year. CASA has been wishing for a larger space for the children for many years. The volunteers helping the children would surely be excited by the prospect of a brighter future for foster children in the area.

CASA’s dream of a large space was fulfilled ironically by the foreclosure crisis. The large number of forclosures homes has pushed down prices to affordable levels. As foster children increased in number during the economic downturn, the prices of forclosures homes also decreased.

When Sherrod saw the property in 2007, it was being sold at $829,000. She also thought the seller would not accept a discounted offer because the property is near the courthouse.

But as the number of forclosures homes increased and the prices of foreclosures decreased, Sherrod felt she can request for a discount. She began campaigning to raise a $1.15 million budget and offered to the seller a purchase price of $585,000.

The owner rejected Sherrod’s offer, but Sherrod sustained CASA’s fundraising campaign. As the fund drive was pursued, major benefactors came on board, including the Borina Foundation, which provided $250,000, and Mary Solari, who donated $300,000.

CASA’s board members, staff members and other supporters also made pledges to help. CASA vice president Leola Lapides, a retired lawyer, said she is proud to belong to a community which is concerned about the welfare of children and does something concrete for them.

When CASA finally won the house in an auction with a $395,000 bid, every CASA supporter felt joy. Considering rezoning costs and back taxes, the total cost of acquiring the property would be about $430,000, which is still a bargain price compared to the original price of $829,000.

In a twist of fate and American sense of community and charity, the foster children got their dream from forclosures homes.

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• Tax Lien Foreclosures: A New Way to Buy Repo Property
• Foreclosures May Lead to Opportunities