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Oakland Bids for Housing Recovery Fund for use on Foreclosures

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By : Cassiano Travareli    99 or more times read
Funds close to $4 billion dollars were distributed to state and local officials, including California, as part of the Federal Housing and Economic Recovery Act. This would be a great help for this state in its bid to stem the tide of increasing California foreclosures.

The city of Oakland, ranked as 10th with the highest foreclosure rates in the state, was allocated $8.2 million dollars. However, the amount may not be enough to buy a considerable number of foreclosed homes for rehabilitation. This is mind, Oakland officials are bidding to get a share of the additional $145 million that the California State Department of Housing and Community Development have reserved for much needy areas.

Oakland is competing for this money against Stockton, Bakersfield, Sacramento, Fresno and other cities included in the top 10 with the most number of foreclosures. In Oakland, one out of four single-family homes has filed for foreclosure, reaching 16,000 properties to date within the last 3 years.

The city must submit by December 1 a presentation on why the city needs additional help, as well as a proposal for a recovery program for residents with problems on subprime loans.

The federal funds have certain regulations that local officials must abide with. It can only be used for completed foreclosure properties, and should not have been inhabited for at least three months. The funds can also be used to help households with combined incomes not exceeding 50 percent of the area’s median level.

It cannot be used, however, to shoulder delinquent payments in a bid to save homes from foreclosures. Families with this problem may still end up losing their homes.

Oakland’s city officials for housing and community development are currently finalizing the outline detailing specific programs that will utilize the funds based on federal requirements. The City Council is giving this top priority in order to meet the December 1 deadline. Their goal is to use these funds to help hard-hit areas as well as already blighted neighborhoods with an increasing number of empty homes.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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