Programs to Stave Off Bank, Government Foreclosures Homes

by on Foreclosure Help

Orlando, Florida Mayor Buddy Dyer, Secretary of HUD Shaun Donovan and Congressman Alan Grayson toured a city neighborhood to highlight the success of two federal programs designed to reduce the number of bank and government foreclosures homes.

Donovan described Orlando as the ground zero of the foreclosure crisis. He also defended the Obama Administration’s $75 billion Making Home Affordable program and Neighborhood Stabilization Program (NSP).

He said that the initial goals of the federal loan modification program will be met but he admitted that the program is not a solution for the country’s unemployment problem. The officials toured a foreclosure home that is being renovated through the NSP. The city of Orlando purchased bank and government foreclosures homes using NSP grant from the HUD.

The renovated house that was toured by the three officials was bought for $125,000. The city intends to spend $20,000 on renovation and repairs of the house. The renovated house is expected to be sold for $145,000. Industry experts are hoping that the rise in sale price will help drive up property values of surrounding houses.

Meanwhile, Donovan said that the government program provides much needed respite to distressed homeowners who are facing foreclosure while the NSP helps stabilize and strengthen property prices and values.

He urges the Congress to approve President Barack Obama’s modernization plan for the country’s financial system and for the creation of the Consumer Financial Protection Agency in order to protect families who avail of financial services and purchase financial products daily.

On the other hand, Grayson pointed out that the two HUD programs are important in helping families remain in their homes, staving off foreclosures, helping create affordable home ownership and providing shelter to those who cannot afford to own a home.

The federal program was created to stabilize the housing market in the country. The initiative includes Home Affordable Refinance Program to help nearly 5 million homeowners have an easy access to refinancing, Home Affordable Modification Program to lower monthly loan payments and providing support to low mortgage rates.

So far, the loan modification program has helped modify mortgages of more than half a million families and prevented bank and government foreclosures homes from further spreading across the country.