Evening star., 1935-07-13
LOAN GROUPS TURN
PROPERTIES BACK
Owners of Small Homes Re-
gain Them as 1885
Progresses.

An increasing factor in 1895 real
estate activity is the transfer to
family ownership of millions of dol
lars worth of small homes which the
savings, building and loan associa-
tions were listing among their assets
six or seven months ago, the United
States Building and Loan League re-
ports.
On a sales contract basis between
s17,O0O,O0O and S2O,OO0,O0O worth of
these properties have been condi-
tionally sold by the associations since
January to families which will even
tually hold title to them, and small
homes totaling several other millions
of dollars in value have been bought
outright with the aid of mortgage
money from the association listing
the property, according to T. W. At
kins, director of field service for the
league, who has just completed an
extensive survey trip embracing nearly
every geographic division.
Small down payments, liberal in
terest terms and periods OF between
10 or II years in which to pay out
have made it possible for thousands
of families to take possession OF
these bargain homes on a contract
of sale with the associations. thus
applying the rent money toward
eventual ownership" Mr.. Atkins eX-
planned.
Properties Go Of Market.
"It is customary to transfer title
to such properties to the family when
money paid into the association on
the contract basis has mounted to
point where there is sufficient equity
to grant a first mortgage loan. The
offering of properties on these terms
has proved such an impetus to their
removal from the market that great
number of associations are getting
their balance sheets rapidly to the
place where real estate is an inSlg-
nificant item.
Since the properties taken over
by mortgage lending institutions have
long constituted the most discouraglng
factor in the real estate market, this
definite trend toward new ownership
for such homes will quicken activity
in the field as few other things could
The league executive pointed out
that expenditures by the associations
to modernize and repair the proper
ties to which they hold title have been
an important influence in accelerat-
ing their transfer to family owner
ship. AS their first definite step in
the F. H. A. modernizatoin campaign
last Fall, thousands OF associations
undertook to put in modern, attrac-
tive condition every property they had.
In October, November and December,
the only months for which careful eS
Inmates of this volume of work have
been made, they spent sl6,000,000 to
make these houses sound as we'll as
attractive investments for their buy
ers. Many more millions have been
spent on the same type of improve
ment during the Spring months of
1885, he indicated.
Gets Renowned Home.
GAS result the buyer of the prop
erty, whether on a sales contract or
on conventional mortgage basis, has
IidQ tIlt DCllCIlI VI q LCLIOF4ACu llO4iIS'
with its repairs and improvements
done under the expert, economical eye
of an association manager" he COM
mented. IF the new owner had
bought the house unrepaired. even at
q much lesser cost, and undertaken
to modernize it himself, it would
eventually have cost him more money,
because of his lack of familiarity with
all the details of planning and exc
cutting repair jobs. Therefore these
families taking their first step toward
home ownership today find themselves
fortunate not only in getting liberal
terms but also in getting a well-con-
ditioned house"
Mr.. Atkins indicated his belief that
the demand for these properties is
steadily on the increase on account of
the developing housing shortage, sus-
tanned uptrend in rentals and the
search for something material and
substantial in which to invest. Ag-
gressive campaigns through which the
associations have been bringing the
properties to the attention of the pub
lie will continue throughout this year,
in his opinion, and will pave the way
for removing practically all of this
type Of real estate offering from the
market within the year