Author: otriplg | Total views: 37 Comments: 0
Word Count: 598 Date: Fri, 6 Feb 2009 3:50 PM

False Headlines, False Hope For Struggling Homeowners

Chicago IL will receive over $55 million of federal funds. This must be good news for Chicago homeowners that are facing foreclosure or about to lose their homes.

This federal government hand out is close to the highest given to any one city in the US since the foreclosure crisis hit. So what does this mean for you? Is this going to stop foreclosures in Chicago IL and save this hard hit area.

Think again.

The money will buy and fix foreclosed and abandoned homes to revitalize neighborhoods wrecked by the housing crisis, part of a nearly $4 billion nationwide Neighborhood Stabilization Plan funded by the Department of Housing and Urban Development.

The concept behind this funding seems to be all about fixing the local housing market, which will stimulate and rebuild the local economy. This is a good idea and needed for many cities, but why do federal and local governments continue to flood the media with headlines of hope and programs to stop foreclosure.

When over 95% of them do not help homeowners at all.
Miami-Dade County was granted $62.2 million, said HUD spokesman Brian Sullivan. The funds will be used to stabilize local neighborhoods suffering from the effects of foreclosures, Miami-Dade County officials have drawn up a spending plan for the $62.2 million in grant money. Primarily be used to buy, rehab and resell or rent bank-owned properties to low-income residents.

Miami-Dade, received more money than any county due to it's high rate of foreclosures and projected foreclosures. The Miami area was built up and sold as a real estate hot spot to investors. Mainly buying condos with exotic mortgage loans such as the Option ARM. A loan that allows a payment rate as low as 1% or just paying the interest each month.

Investors and even primary residence owners qualified for mortgages with this type of loan. Now these mortgage are going into foreclosure at an alarming rate.

It seems as if the stimulus plan passed to aid homeowners has been shuffled out to aid banks and local governments. Local governments that are focusing on the result of foreclosures not preventing foreclosures.

The stimulus plan is speeding off the track like an unmanned train. No one seems to know where the funds went, who is accountable and why not $1 has been used for homeowners directly.

House Financial Services Committee Chairman Barney Frank said he plans to win approval of a bill this week that will restrict spending of the remaining $350 billion in bank-rescue funds before Congress releases the cash.

Frank, who introduced the legislation last week, wants the Obama administration that takes office Jan. 20 to use the aid to curb foreclosures and ban bonuses and other executive-pay packages for top executives of participating firms.

We are trying to get the administration to do what it should have done in the first place, Frank, a Massachusetts Democrat, said today at a committee meeting in Washington. If these conditions are met, that will make it a very useful thing.

The confusion between agencies, departments and congress seems to be another typical reaction to a major crisis by the Bush administration. Homeowners facing foreclosure are in need of assistance now.

Building up communities ravished by foreclosure may help to stabilize the local economy, but with millions of more foreclosures staring us in the face it seems as if Barney Frank may have this one right spend the money on homeowners facing foreclosure.

About the Author

Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com

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