Riverside County Foreclosures

October 3rd, 2008 | Tags: Foreclosures

Riverside County in California ranks fourth among the state as regards number of foreclosures. California is one of the top ranking foreclosure-offending states.

The federal government has sanctioned a relief package of $48.5 million for purchasing and refurbishing foreclosed houses. These houses have become eyesores and attracting crime as well as disease. HUD will be distributing over $3.9 billion to those areas that have been badly mauled by the ongoing foreclosure crisis.

Riverside County is slated to receive the grant running into millions as Community Development Block Grant of HUD within the following few months. Tom Freeman, the spokesperson of the agency said that these funds would be used purchase and repair abandoned or vacant foreclosed houses, repair or demolish them and put the estate back into the market as affordable housing for the weaker section of society who are residents of Riverside. Assistance will be provided as regards down payments and closing costs.

The block grant administrator will be The Economic Development Agency. The latter will work in tandem with 14 cities to chalk out the details of the disbursement of funds. The Board of Supervisors will obtain the HUD sanction plans on 21st October. After clearing a request for approval the grant will be distributed.

It is hoped that the funds will give a great kick to the market. However Freeman added a note of warning saying that it is not the time to celebrate as this only highlights the state of the present housing market.

HUD has launched a new operation – Neighborhood Stabilization Program that will see to the granting of emergency help to those who are directly in the line of the foreclosure fire and needs immediate assistance. The clear intention is to inject the money into works that will benefit the communities and to see that the results are meaningful and positive. The real work will now be beginning.

HUD is standing beside those regions that are the worst affected by the housing crisis. Stabilization of neighbourhoods is the call of the hour. This stabilization operation kicked off with the inking of the Housing & Economic Recovery Act of 2008 on 30th July. It provides for $300 billion in foreclosure rescue work to help “distressed borrowers”. A Housing Trust Fund will subsidize new construction of affordable houses for first time purchasers. The size of the grants will be determined by the number of foreclosures in the region, rate of house ownership and decline in property values and employment numbers.