The problem of high foreclosure rates and declining values of properties due to foreclosure short sales have hit most areas of Oregon. On top of these housing market problems, unemployment rates in most local areas of the state have also soared.
That is why the grants from the U.S. Department of Treasury have been eagerly anticipated by most local areas, including Bend. The number of foreclosed homes for sale in Bend, OR has been some of the highest in the whole state and the area is also suffering from soaring unemployment rates.
However, the Treasury reportedly based its selection of beneficiaries on census data rather than unemployment or the impact of the thousands of Oregon foreclosed homes on local counties and cities, particularly on rural areas like Bend. This led to the department's grants all going to Portland-based institutions.
According to real estate market analysts, this is despite the fact that Bend, along with the counties of Josephine and Jackson, has an unemployment rate higher than the national and state levels. Not to mention that house foreclosures in all three counties have weighed down the areas' housing markets and, in turn, their local economies.
The Treasury grants totaled $105 million and are meant to be provided to financial institutions that are serving communities struggling from high foreclosure rates, foreclosure short sales, unemployment and other economic-related problems. The grants were issued through the Community Development Financial Institutions Fund, with a total of $1.64 million reserved for the state of Oregon.
Some local officials have complained that the full amount was given to four institutions based in Portland, with Bend, Josephine, Jackson and Medford counties not receiving anything. In Bend, one worker out of seven is out of job, according to labor market statistics, while in Josephine County, unemployment rate is at 13.9%. Medford, on the other hand, has an unemployment rate of over 12%.
The Portland institutions that received grants from the department were Albina Opportunities Corp., Network for Oregon Affordable Housing of Portland, Oregon Microenterprise Network and Portland Housing Center. Treasury Department sources have revealed that more than 400 institutions applied for assistance, with most of them citing foreclosure and unemployment rates and declining home values due to foreclosure short sales as primary reasons for their need for financial help.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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