Tarrant County is seeking help from federal funds

August 4th, 2009 | Tags: Foreclosure

Real Estate for Sale

Tarrant County, wrecked by foreclosures, is seeking federal funds and hoping to get stabilized with this help.

One resident is Sonia Green. Thanks to the federal help she is now finalizing plans to buy a house with a loan of $25,000 that is coming without any strings. It means the problem of one foreclosed house is solved; but that of another 4,200 remains.

In Texas there are 254 counties. Of these the worst affected is Tarrant and the most in need of help. The county is reeling and gasping as foreclosure numbers continue to mount. Unemployment is fueling the flame and increasing the poverty rate according to Texas Department of Housing and Community Affairs.

In the far south in Fort Worth region, per square mile there are about 30 foreclosures from 2007 September till 2008 September. In general foreclosures increased by 22% in Tarrant County in 2009 as compared to the same period in the previous year as per the findings of Foreclosure Listing Service, Addison. The situation is not improving. In July there were 2,015 foreclosure listings – it being the highest for any one month since 2000 according to Foreclosure Listing Service.

The federal government has come to the rescue with $23.8 million. It is part of a federal plan drawn up by the Bush government and brought forward by the new administration of Obama named Neighborhood Stabilization Program. Dollars are now rushing into Tarrant County. The city officials and non-profit groups are hopeful that it will stabilize the market. The fund is flowing from a sanction of $3.92 billion made last year by the Congress aiming to plug the foreclosure flood.

Experts are debating about how far the funds will be able to turn the tide. Housing personnel and critics are saying that it will take years before there is any impact. Most agree that the amount is too small in comparison to the size of the problem and will have little noticeable impact.

With the funds Tarrant County is planning to purchase 16 foreclosed or vacant units. Part of the money will go to help struggling families complete loan workouts. The target is to assist 222 households in Fort Worth with their loan problems. The Tarrant County Housing Partnership and Fort Worth Housing Authority each have their own plans chalked out for making use of the funds.
On an average there are 575 foreclosures per month in Tarrant County. The assistance numbers fall way behind these figures!