Foreclosure Aid Programmes Are Benefiting Marion Residents

In days gone bye bank induced foreclosures were practically unknown in Marion County but today these have become common. In 2008 the clerk of the Circuit Court listed 5,000 foreclosed properties – it being a jump of 117% from 2007 and a whopping spike of 400% from 2005.

About a year and a half ago the foreclosure crisis had begun to make its presence felt in this region. This is the first time that foreclosure aid programmes will benefit Marion residents. HUD is advancing loans to counties across America to repair and sell foreclosed houses to those with moderate to low income. This operation has been named Neighborhood Stabilization Program.

Marion County will be getting $6.3 million sometime in late January said the director of Community Services of the county, Cheryl Amey.

The objective is to purchase the foreclosed vacant units with the sanctioned money and make the necessary repairs before selling them. The money from the sale would be taken by the Community Service Department so as to reinvest it again into the next round of similar programmes of buying, renovating and selling. According to Amey the sanction of $6.3 million will enable the purchase and repair of 43 houses during the first round of operations. If any money is left over it will be returned to HUD.

As per conditions, Marion County has to utilize the funds within 18 months. After that it can start reinvesting in purchasing new foreclosed units. This can be done till July 2013 when the county will have to return the loan to the federal government. Amey explained, “This is like a long-term loan, interest-free. And the faster we can recycle these funds, the more houses we can do.”

The county has had to give details to HUD about the zones on which it will initially concentrate with the money from Neighborhood Stabilization Program. The conditions are that the region must have a minimum of 25 foreclosed vacant houses per every three square miles. Also these regions have to show a high percentage of sub-prime loan takers indicating future likelihood of foreclosures. The area would also have to be suitable for the settlement of those with moderate to low income.

Amey elaborated that the assistance was for those families whose income was not more than 120%of the average income of the county. It approximately calculated to $48,800 for a family consisting of four members.