Foreclosures: Illinois Town Invests in Them

Foreclosed homes can bring down the value of neighboring homes and otherwise be a blight on the community if they sit vacant for an extended period of time. That's why the town of Cicero, Ill., a Chicago suburb, is buying up bank-foreclosed properties, rehabbing them and selling them back to residents as subsidized housing.

"We do not want these foreclosed properties to go unattended and turn into hangouts for gangs or drug dealers," said town president Larry Dominick. "I do not want these homes to turn into eyesores that impact their neighbors."

Cicero, which was hard hit by floods that took place July 24 and was the largest suburban recipient of $10 million of federal flood assistance from FEMA, so far has purchased three foreclosed properties.