The Various Foreclosure Assistance Measures Have Failed to Show Results

April 21st, 2009 | Tags: Foreclosure Notice

So far the various foreclosure assistance measures have failed to show results. The slow pace is frustrating those who are trying to bring back the health of the worst hit regions. The federal funds are supposed to become effective and flowing from summer.

In July 2008 Washington under Bush had rushed billions as emergency assistance to local governments in the hope of saving the regions from unbridled foreclosures. The Neighborhood Stabilization Program was expected to produce swift results but it has not shown anything positive as yet. The only thing visible is plenty of red tape and debates and arguments between the local political leaders.

At the regional level the officials think that it will be June this year before the auction hammer bangs down and first sale takes off. There is no possibility of any results showing before the end of summer.

The Neighborhood Stabilization Program was aimed at improving the economic health of localities. The local administration was expected to purchase and repair foreclosed units before selling them to low and middle-income buyers. There were also plans of renting out the units. According to the program the local administration was given a free hand and could turn over the assignments to contractors

The local leaders and activists are now demanding to see action and results right now without further delay. The foreclosure crisis has done extreme damage to the neighbourhoods with abandoned properties turning whole areas into ghost suburbs. There are no signs of the foreclosure crisis abating.

Recently in April 2009 a study conducted by a non-profit showed that the average price of houses in five of Atlanta’s core counties fell by 16% during the last six months of 2008.

Robert Welsh of Dirty Truth Campaign (a foreclosure tracking group of zip 30110) said, “We wish things would move faster. It’s a big problem, but at this point, we’ve got to roll with what they have going.” John O’Callaghan of Atlanta Neighborhood Development Partnership said he too wished that the programme would put in more speed. He plans to work with many counties with the federal funds to fight this continuous slide. He said, “I’m confident it will all hit the streets by June or July, and we will see houses ready for occupancy by September.”

Congress had sanctioned $4 million for this programme in July 2008.