Fort Worth Foreclosures for Sale Benefit From Stimulus Program

by Donald Hanz on cities

About 50 families living in Fort Worth foreclosures for sale are given a chance to remain in their houses. The Texas city has helped 50 lower-income families become first-time buyers under a federal initiate aimed at reducing the number of foreclosure properties.

According to industry experts, the $2 million Neighborhood Stabilization Program (NSP) has been helping not only prospective homebuyers in Fort Worth but also in other cities across the United States. The program also is one of the many initiatives of the Obama Administration to control the spread of foreclosures and prevent them from becoming blights to neighborhoods and pulling down housing prices and values.

Under the program, the city provided about $21,521 for the repair of Fort Worth foreclosures for sale. The repairs include flooring, exterior paint, fencing and windows. Some of the properties identified under the program have been vacant for almost six months before they found their new owners.

Experts said that a growing number of neighborhoods in the city have been severely affected by the foreclosure crisis and the economic downturn. And with the increasing unemployment rate, more homeowners are expected to go into foreclosures.

In 2008, nearly $3.9 billion federal funds were awarded to various states, cities and towns under the NSP which was launched under the Housing and Economic Recovery Act. The city of Fort Worth was awarded nearly $6 million NSP funds to help address the growing foreclosure problem in the area and to prevent foreclosed houses from becoming blights to neighborhoods.

Furthermore, about 6 families in Arlington were given help under the NSP to purchase houses. As of now, an additional 14 families have been given the chance to have their own homes. The city government has been intensifying its efforts to contain the growing number of foreclosure houses in east central and southeast Arlington.

The city government plans to help more families buy foreclosed homes in December if it will receive the almost $5 million additional funding under the NSP.

Statewide, foreclosure filings from July to September rose by 11 percent compared with the same period last year. In September alone, an increase of 17 percent or 13,216 foreclosure houses were posted. The steady increase in foreclosure activity in the third quarter is expected to result to more foreclosures in the coming months.