Evening star., 1939-02-18
Sale Of ForecIosed
Dwellings Seen as
Market Stimu|ant
Choice Investment
For Home Owners,
Dr.. Husband Claims

\uNbIuS
The foreclosed dwellings now helc
by American mortgage lenders offel
q partial solution of the Nation!
housing problem and their sale
would stimulate the whole home
financing industry, Dr. William H
Husband, a member of the Fedora
Home Loan Bank Board. said today
Thousands of houses now held by
mortgage lenders as result of fore
closure provide choice investments
Tor prospective home owners, he
pointed out. And the Nations saw
1ngS and loan institutions stand
ready to lend money for the recon-
ditioning of those residences which
require it. he added.
Estimates made by the Division of
Research and Statistics of the Fed
eral Home Loan Bank Board, DR.
Husband said, indicate that at the
end of 1887 American mortgage lend
ers held approximately $4,000 one
to-four- family dwelling units valued
at more than 50 500 ,OO0.O 900. Although
<AAa oS$aA otS SoSlAAiolS Va Quill pl
erty at the end of 1898 is not yet
available, there is reason to believe
that the figure has not changed
appreciably during the last year.
Building Below Needs.
During 1888. 356,O0O new dwelling
units valued at approximately ST.
S30,000,000, were built, according to
a preliminary estimate of the United
States Depart of Labor of this total
only about 100000 units were homes
the remainder being apartments
This is considerably less than the
estimated annual need and en-
phasizes the Importance of the pres
ent unabsorbed supply of dwellings
in relation to the larger national
housing problem.
Good housing is not necessarily
new housing" DR.. Husband explain
ed The experience of the Home
Owners Loan Corp, which has re-
condition nearly half million prop
critics, has shown conclusively that
old residences which are soundly
built often can be converted into
desirable and attractive, modern
looking dwellings by the expenditure
of few hundred dollars.
THE individual who wants home
but whose funds are limited may
profit by the H. o. L. C.'s experience.
Often he will find it more economl-
cal to buy and recondition used
property than to build from the
ground up. He will find not only
that such properties can be bought
at reasonable prices upon convenient
terms. but also that savings and loan
associations are ready to advance
funds for their thorough moderni-
Eation.
Much of 1t Sound.
while some of this property may
fall into the class of substandard
housing, great deal of it represents
soundly constructed dwellings
which may be placed in frst-class
condition by any reliable contrac-
tor. BY the wise use of paint and
plaster, and the installation of new
bathroom and electric fixtures, much
Va Az Sdll NC SOllPCIUCU llllO
Portable, attractive dwellings,"
There are in many instances def
mite advantages, DR.. Husband point
ed out, to the choice of an existing
dwelling over the construction of
a new one. The buyer, for one
thing, may visualize more clearly
what he is getting for his money
For another, the nature of a neigh
borhood around house which has
stood for some years is more readi-
ly determined and the property is
not as subject to sudden fluctua-
tions in value as are new develop
ments. Again, used homes often
can be purchased and reconditioned
for less than the cost of a new
dwelling of corresponding inherent
value.
Sees Stimulating Effect.
Resale of considerable part OF
the dwellings now held by institu-
tional lenders, Dr. Husband stated
would have a stimulating effect on
housing as whole. For the money
: released by the sale of this fore
closed property Immediately could
be employed to finance new homes
and to give additional strength to
the real estate market.
There is not the slightest doubt"
DR.. Husband said, that ample loan
able funds are available at modest
interest rates to recondition a great
part of the idle real estate now in
the hands of mortgage lenders and
to convert it into modern, comfort
able homes"
Those associations which are
members of the Federal Home Loan
Bank System have a line of credit
which enables them to increase their
loanable funds through advances
from the regional Federal Home
Loan Bank of which they are men,
bers, whenever the sound demand
for mortgage loans justif1es their
borrowing.