The funding is made possible under the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP). The program designates funding for use by neighborhoods to buy abandoned and foreclosed houses, rehabilitate and sell or rent them to low-income families.

Last year, the Sonoma County Community Development Commission and both cities of Petaluma and Santa Rosa applied for the program which will distribute about $3.9 billion across the country.

Industry experts explained that the reason behind providing grants to community nonprofit organizations was because of the large number of foreclosed single-family houses which are ideal for community housing. Under the program, community nonprofits will act as banks by making funds available, thus sparing the county the trouble of operating a facility.

The funds will be released by the California Department of Housing and Community Development. Upon the release of funds, community nonprofits will submit their applications for flipping houses.

The Community Housing Sonoma County, a nonprofit group, is helping around four applicants apply for funds, including one for veterans, mental health patients, drug rehabilitation and homeless.

Aside from submitting applications, eligible organizations are required to have foreclosure properties in escrow or contract. Industry experts said that the program will allow organizations to help eligible individuals and families have their own permanent and stable houses.

The properties under the program will have a price range of as low as $250,000 and as high as $300,000. Furthermore, the property needs to have not less than three bedrooms. Under the program, Sonoma County will provide a loan with 3 percent interest for about 30 years. Residents will have to pay a monthly rental fee of $300 and $400.

The National Alliance on Mental Illness Sonoma County is one of the organizations planning to buy a foreclosed home, probably in Petaluma.

Flipping houses are popular among investors who want to earn profits. But now the practice is also becoming popular among organizations who want to help alleviate the impact of foreclosure. The process involves buying foreclosure homes, rehabilitating and selling them for a reasonable profit. Proceeds from the sale are usually used to buy more foreclosed properties, fix and resell them.

Real estate has long been considered the safest place to put discretionary income. Also, to own real estate has always been an expression of the culmination of the American Dream. But what makes this dream even better is if you can locate a great deal when purchasing your home. Look to the foreclosure market. Historically, the foreclosure market was for those with insider knowledge and connections. This is no longer the case. Today, foreclosure homes are available in every town nationwide. Foreclosure homes are available in every size, and better yet, in every price category. Many times, foreclosed properties are priced so low; it opens the door to many new investors looking to grab their own piece of the American Dream pie.

Foreclosure homes are also a great way to "flip" housing. "Flipping" is the process wherein you purchase a home at below market pricing and renovate or improve it to sell at a profit to the next homebuyer. The best place to start looking for these types of properties is the foreclosure market. Homes in foreclosure are less expensive, usually have some built in equity involved and many times can use repairs or upgrading. Foreclosure homes provide multitude of opportunities for negotiations.

If you locate a foreclosure home you are interested in, be sure to do your research prior to entering into a contract. View the home when possible, have independent appraisals done, and have the property inspected. Understand how much additional money it may take to get the house to the way you want it. At times, foreclosure homes need little more than cosmetic work, however, the true bargains are when the property needs more renovation. If you calculate honestly and leave a margin for the unknown, you should be able to get a great deal in foreclosure homes.