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Foreclosed Single and Multifamily Properties Rise Despite Programs

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By : John Cutts    99 or more times read
The number of foreclosed single family and multifamily properties continues to rise in most areas of Arizona despite the presence of various foreclosure-mitigation programs. One of the programs implemented in the state was reportedly able to help only a single household in its six months of operation.

Foreclosure listings in Mesa and in other areas of the state continue to grow despite several foreclosure mitigation initiatives launched in the state since 2009. One of these programs is the Save My Home AZ, which is supported by a grant worth $125 million provided by the U.S. Treasury Department. The project has been in operation for six months and was reportedly established to help address the foreclosure problem in the state.

However, the initiative has reportedly helped only one household out of the thousands that fell into foreclosure listings in Arizona in its half-year existence. The state's Department of Housing got the funds from the Treasury last July 2010. Since then, over 240 homeowners have applied for assistance under the initiative, with one securing an approval for a principal mortgage reduction.

With only one successful case among the many single family and multifamily properties under foreclosure in the state, some have asked whether the effort was a waste of time and money. Officials from the initiative have responded by saying that the program was hard to sell to lenders and borrowers alike, but it does not mean that it has failed, since there are still a lot of homeowners that are seeking help for foreclosure problems.

Officials have stated that it is hard to convince lenders to participate in the program, which focuses mainly on principal reduction. However, officials stated that this method is the best way to lower the number of properties falling under list of foreclosed homes for sale in the state. They also revealed that Arizona was one of the first areas in the U.S. that has adopted the principal reduction method, hence, the slow start.

They revealed that steps have been taken to step up efforts to get lenders to cooperate. They added that they are collaborating with other regions to get banks and lending companies to join in the program and are hopeful that more cases of foreclosed single family and multifamily properties will be aided in 2011.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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