Foreclosure Assitance Programme Stumbles

The sub-prime crisis has reached jumbo proportions touching each and every corner of the country. The communities as well as national leaders are trying to find a panacea for the illness. Unfortunately locals may lose out on a plan that had been designed specifically to help them through this rough period.

HUD refused to entertain a request made by Kitsap, County Consolidated Housing Authority to organize a counseling programme for those who are under the shadow of foreclosure and about to lose their houses and for those seeking advice as regards credit. HUD had given counseling grant for KCCHAS for three years but it refuses to sanction $70,000 fro the fiscal year 2008 that began on 1st October. Executive Director Norm Mcloughlin of KCCHA is hopeful that some funds will come from another bill making its way through Congress. The Senate has sanctioned already $100 million towards funding local agencies for solving foreclosure problems. He is also optimistic about private donations.

HUD says that it sanctioned $44.1 million in housing counseling grants to 400 agencies across the county this year. It was $5 million more than the previous year but the number of agencies receiving grants has gone down. Deborah Howard spokesperson of KCCHA explains that the number of foreclosure victims rose this year. But it has been concentrated in some pockets and not so prominent in others. The foreclosure number rose in areas where sub-prime mortgages had been popular. In general the number is on the rise. Another feature is that those who are coming for help to the agency facing foreclosures are not the same who came the previous years seeking advice regarding buying houses. This is because the agency has never encouraged sub-prime loans. They have always given the advice that loans should be routed through conventional channels.

The agency does not charge anything for the advice being given to individuals whose income is below the average of the area. But others with an average earning above it are charged a fee.

Norm stresses that now more than before families are in urgent need of help because of the foreclosure tsunami. Ownership of houses is the basis of a strong foundation of the society. This leads to social and economic stability in the long run. It is imperative that the programme continues without faltering for the welfare of the country.

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