Various local communities in Illinois will be receiving their share of the U.S. federal government aid that totals $30 million. The funds will be distributed among local neighborhoods suffering from the impact of foreclosures, including foreclosed homes for sale in Chicago.
The funds are part of the third round of aid issued under the Department of Housing and Urban Development's Neighborhood Stabilization Program (NSP) and will be allocated to areas that have some of the highest number of foreclosed properties, including foreclosed Wachovia homes for sale.
The financial aid is meant to reverse the neighborhood blight caused by the thousands of Illinois foreclosed homes and is part of a nationwide federal aid program announced by the administration of U.S. President Barack Obama. The third round of NSP financing is reportedly worth $1 billion in total distributed among local communities that suffered the most from the housing market crisis.
Part of the funds will be used to buy foreclosure homes for sale that will then be renovated or refurbished to be offered at discounted prices to low income and mid-income families who wish to purchase a home. An estimated $6 million have already been issued earlier as part of the government's neighborhood stabilization aid program.
Neighborhoods greatly affected by the huge number of foreclosed homes for sale in Chicago can look forward to receiving $16 million in the coming weeks, while Cook County communities will get an estimated amount of $7.8 million. Lake County is set to get $1.4 million, while a total of $5 million will be given to the state.
The third financing round will be tied up with the First Look initiative announced by the federal government the previous week. Under the First Look project, lenders who have foreclosed properties in their books will provide neighborhood stabilization program recipients up to two weeks to bid on foreclosed properties before consumers and investors are allowed to do so.
News of the financial aid has been welcomed by local officials and residents in the region, particularly those who live in neighborhoods that have some of the highest levels of foreclosed homes for sale in Chicago and other foreclosed properties in other cities and counties of Illinois.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.