HUD Funds Come To the Rescue of Foreclosure Victims

October 7th, 2008

HUD funds are now available for rescuing foreclosure victims in McAllen. A survey is being conducted covering over 320 lending firms to find out the extent of foreclosures each is responsible for. The findings will support their cases when they seek a slice of the $101 million cake from the governor of Texas, to help them tackle the foreclosure problem.

The Neighborhood Stabilization Program will help the officials of the city. This body sanctions grants to states as well as to communities for the buying of vacant foreclosed houses. The target is to purchase and refurbish these units and then sell them to certain qualified buyers as affordable houses. It is the derelict empty units that are causing serious problems as regards law and order as well as plunging property values.

The Deputy Manager of the city, Brent Branham had to contact each of the lenders, as there is no one point from where detailed foreclosure information is available. Branham said, “We’re basically kind of on our own, to see how good or bad it is.” He added that they have to chalk out their needs and then contact the state government to get a slice of the cake

The funds are part of an extensive Congress approved foreclosure bill. It will be routed through HUD. A total amount of $3.92 billion was approved of. McAllen and similar other cities wanting to avail of these grants will have to submit their detailed plan of action to Austin latest by 1st December.

HUD will be granting Hidalgo County a sum of $2.8 million to tackle the increasing foreclosure problem. The county has a foreclosure rate of 8.2% during the last 18 months – it being much higher than the state rate counting of 3.7%.

The funds will be utilized for buying discounted foreclosed units and then repairing them to make it habitable. If required the money can be used for bulldozing derelict properties. The funds could also be used to give monetary help to those coming from the economically weaker section of society so that they can avoid foreclosures. J.D Salinas, County Judge of Hidalgo said that the sanctioned money is just a drop in the ocean. A much greater amount is required to address the spirally problem. He hopes that South Texas will also benefit from the $700 billion bailout package.