SoCal Foreclosure Blight Receives Help
More than a quarter of nationwide foreclosures have occurred in California, and now more help is on the way. Last month, SoCal received $529 million in federal aid to help with basic upkeep on properties that have been foreclosed on and are currently sitting empty. This money has gone to mowing grass, keeping doors locked, and repairing flaws that could lead to illegal entry such as broken windows.
The Housing and Economy Recovery Act of 2008 was passed in July and will allow state governments to buy, rehabilitate, and sell these abandoned homes to low and middle class buyers. This money was badly needed by states such as California to alleviate the pressures that have come with the nationwide foreclosure epidemic. Since mortgages are often owned now by groups of nameless investors, it can take a long time for foreclosed homes to be sold. Allowing state’s to match up these empty homes with new owners who can secure loans and take over can relieve some of the problems caused by deteriorating homes.
While this help was very much needed, California’s senators were not pleased that Florida received more aid than California, even though that state’s number of foreclosures was less. The total amount of aid approved by congress and President Bush was over $4 billion, and the senators feel their state should have received much more than since they have one of the biggest foreclosure problems in the country.
Riverside County was listed last month with the fourth-highest foreclosure rate in the United States, and will be allocated around $49 million dollars—the third largest allocation out of the entire country.
The federal funds have been called “bittersweet” by Californian officials because it does not come under good circumstances for the state. Almost every community in the state is littered with vacant homes, many of which have been sitting empty for quite some time. Not only does this drive the property values down in these communities, but it attracts crime, vandalism, and deteriorates the neighborhoods. The federal help will allow some relief as these homes can receive the normal upkeep that a homeowner would normally provide. At least the appearance of normal life can be maintained for the neighbor’s peace.
If California were not facing such a devastating outbreak of home foreclosures, it would not need such federal aid, and definitely would not need to write letters to Housing and Urban Development Secretary Steve Preston to insist that they deserved a higher portion of the overall congress approved aid. While the aid they were allocated is much appreciated and will help with upkeep for a lot of the abandoned homes, it will require much more to do the job for all of the communities in need of help.
In California, Riverside County and San Bernardino County received the largest allocations of the state’s money. These are the counties most affected by the home foreclosures.
I read a book called “Mortgage Meltdown” and it really helped me understand that I’m not the only one going through this. I was also able to apply for a grant from a non-profit to help me with my mortgage. I think anyone who is trying to save his or her home, like me, should read this. Go to http://www.48grant.com