Foreclosures High; Springfield to get $6.1 million Stimulus Money

The US economy is on a tailspin what with unemployment at its peak. As people lose jobs thick and fast, even those with sound credit history are faltering on mortgage payments. Hence, foreclosures have become common.

Now the Federal government has come up with a program to stem foreclosures. As part of this program, loans of homeowners are being modified, first on an experimental basis of three months, and then on a permanent basis.

Springfield City will get above $6.1 million as stimulus money to stem the tide of foreclosures. Neighborhoods are also expected to be improved under this program.

Shannon Meadows, who is the Community Development Director, said that the second phase of the Neighborhood Stabilization Program will have a positive influence on areas. The opportunity will indeed be a great one for neighborhoods.

Sherrod Brown, who is the US Department of Housing and Urban Development secretary, said that the program is being focused on two areas. The eastern region of Wittenberg University and the western part of the hospital are the two focus areas.

Under this program, the foreclosed homes that are lying vacant for a long time, would be bought over and renovated and then sold to middle-class buyers. The properties that have been ravaged by vandals would also be demolished as part of the program. In fact, 10 per cent of the stimulus money would be spent on the program. Also money would be spent on low-income housing.

Non-profit organizations like Habitat for Humanity have pitched in for low-income housing. Incentives are being offered to those employees who are buying homes near the campuses. Mayor Warren Copeland is of the opinion that a lot needs to be done to prevent further devaluation of properties.

After all, foreclosed homes in the neighborhood can drag down property values. It also hurts other people in the area who are regular about loan payments. Copeland says that everyone in the region suffers because of this.

Copeland also says that everyone should take up a homebuyer education course before buying a home. After all, the government wants people to live in their homes and not lose them. Experts, however, are of the opinion that unless the employment scenario improves, foreclosures cannot be stemmed. The worst affected regions in the US are California, Nevada and Arizona. Most houses have been foreclosed in these regions. The Federal government’s program of Making Homes Affordable has really had no effect.

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